24 October 2023 - Technical Assistance II
Aiming to strengthen its commitment towards a sustainable future, Indonesia has been steadily making headway in carbon trading. Under the aegis of Presidential Regulation No. 98 of 2021, the nation seeks to harness the economic value of carbon using trading instruments like carbon pricing. The initiative aims to expedite and fund the reduction of greenhouse gas emissions, aligned with the Nationally Determined Contribution (NDC) targets. On 26 September 2023, President Joko Widodo officially launched the Indonesia Carbon Exchange, signifying Indonesia's dedication to proactively combatting the climate crisis.
To further refine and enhance the nation's carbon trading system, a pivotal government consultation was convened on 23 October 2023 at the BKPM office. Organised by the Ministry of Investment/BKPM, in partnership with ARISE+ Indonesia, the session was chaired by Deputy Minister for Investment Promotion, Mr Nurul Ichwan. The meeting witnessed active participation from the Coordinating Ministry of Maritime and Investment, the Financial Services Authority (OJK), the Ministry of National Development Planning/Bappenas, the Ministry of BKPM, a representative from the European Union Delegation to Indonesia, and the ARISE+ Indonesia Team Leader, Alessandro Martinatto.
Mr Nurul remarked, "The establishment and evolution of our carbon trading mechanisms are instrumental for Indonesia's sustainable future. Through collaborative discussions and leveraging global best practices, we aim to position Indonesia at the forefront of global carbon market innovations for the benefit of both our nation and the planet."
Highlighting the recent development of carbon pricing landscape in Indonesia, the Special Advisor to the Coordinating Minister for Maritime Affairs and Investment on Carbon Trading, Mr Edo Mahendra, presented the approach to carbon pricing in Indonesia, the steps taken so far and unveiled the potential of the Indonesian carbon market. This was followed by a comprehensive presentation by Dr Divaldo Rezende, the ARISE+ Indonesia Carbon Market Senior Expert, who provided insights into international best practices in carbon trading ecosystems.
Currently on a two-week mission in the country, Dr Rezende is set to engage with various carbon trading stakeholders spanning the government and the private sector.
The insights harvested from this meeting will serve as a foundation to formulate actionable recommendations to assist the Government of Indonesia in refining and optimising the nation's carbon trading system.
