The Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX) continue to coordinate with relevant ministries and institutions in preparing carbon exchange infrastructure, both in terms of regulations and trading infrastructure.
The Chief Executive of the OJK Capital Market Supervisory, Inarno Djajadi explained, related to OJK policies in order to support the government in welcoming the Road to G20 Indonesia 2022, especially related to the implementation of sustainable finance, OJK together with SROs are ready to support the government in an effort to fulfill the Paris Agreement, in this case the fulfillment of the NDC of 29% or 40% through the implementation of carbon exchanges in the capital market. "OJK and SRO will coordinate with relevant ministries and institutions to prepare regulations and infrastructure for the carbon exchange," he explained in a virtual press conference, Wednesday (10/8).
Inarno said that his party coordinated with relevant ministries, namely from the Ministry of Environment and Forestry (KLHK), the Coordinating Ministry for Maritime Affairs and Investment, and the Ministry of Finance to implement the initiative.
Until the end of 2022, OJK plans to issue several regulations aimed at improving the quality of governance of Capital Market industry players, then protection efforts to investors, as well as efforts to support the implementation of carbon trading through carbon exchanges in Indonesia.
Head of the Capital Market Supervision Department of the OJK Luthfi Zain Fuady added that the OJK and the Indonesia Stock Exchange (IDX) are preparing or reviewing two things in carbon trading, namely regulatory infrastructure and carbon trading infrastructure through the Carbon Exchange.
This preparation or study is carried out in line with the process of preparing regulations by the Ministry of Environment and Forestry which is the implementing regulation of Presidential Regulation Number 98 of 2021. "Strengthening regulations is also carried out at the statutory level, namely in the Financial Sector Development and Strengthening Bill," he explained when contacted separately.
Luthfi explained, in fact, there are several things related to the carbon exchange, including the types of Carbon Economic Value instruments that can later be traded on the Carbon Exchange, then how is the mechanism for listing on the carbon exchange, what is the legal form of carbon trading platforms.
Then, whether it will be done directly by the IDX or through market operators (legal entities separate from the IDX) which are specifically formed for carbon trading, and who are the parties who can later become sellers-buyers or intermediaries of carbon trading through the carbon exchange, including the requirements for these parties.
President Director of the Indonesia Stock Exchange (IDX) Iman Rachman said, this carbon is not only related to the stock exchange, so it needs to define carbon as a financial instrument because so far when talking about the stock exchange, it is securities.
"We as SROs appoint consultants to examine how benchmarking in other countries, including looking at the supply and demand sides that occur in carbon trading," he explained. Iman admitted that his party is ready to carry out carbon trading, be it using the existing system through KPEI-KSEI guarantees. Or whether it is directly carried out on the exchange or separately on the stock exchange, all those studies they do with the OJK.
Source : https://amp.kontan.co.id/news/ojk-dan-bei-persiapkan-regulasi-dan-infrastruktur-perdagangan-karbon
