The Ministry of Energy and Mineral Resources (ESDM) revealed that 146 coal-fired power plants (PLTU) participated in carbon trading in 2024, an increase from 99 PLTUs in 2023. Dadan Kusdiana, the Secretary General of the Ministry, stated that according to the government's carbon trading roadmap, there are three phases for the power generation sub-sector. The first phase of carbon trading began in 2023-2024, the second phase will be in 2025-2027, and the third phase in 2028-2030. Currently, carbon trading is in its second year, the final period of the first phase, with 146 units participating, including additional large-capacity coal-fired PLTUs of 25 MW or more. In a webinar on Indonesian Carbon Trading and Exchange, Dadan mentioned that the government continues to encourage more participants in carbon trading, particularly in the subsequent phases. Carbon trading will gradually apply to all fossil-fuel power plants, both those connected to PLN’s grid and those for private or non-PLN use. Over time, carbon trading standards will tighten, with lower emission limits, necessitating a combination of carbon trading and offsets. In 2023, carbon trading transactions reached 7.1 million tons of CO2 equivalent, valued at IDR 84.17 billion, with 7.04 million tons from direct emission trading transactions. The ESDM Ministry aims to increase the number of participants, especially from the power generation sector.
This achievement is attributed to Indonesia's comprehensive and well-distributed manufacturing structure, offering higher value added than its competitors. The Ministry of Industry also reported strong performance in the non-oil and gas processing sector in the first quarter of 2024, contributing 17.47% to the national GDP, with a growth rate of 4.64% and accounting for 26.9% of tax revenues. Investment in the manufacturing sector during this period reached 38.73%, valued at IDR 155.5 trillion. The non-oil and gas processing industry shipped products worth USD 91.65 billion in the first half of 2024, representing 73.27% of total national exports, with a workforce of 18.82 million people.
