The Indonesia Stock Exchange (BEI) officially launched its first International Carbon Trading through the Indonesia Carbon Exchange (IDXCarbon) on Monday, January 20. On its debut, the trading volume reached 41,822 tCO2e. 

 

The inaugural international carbon trading featured five projects, nine service users, and nine buyers. 

 

According to IDXCarbon data, from September 26, 2023, to January 17, 2025, the IDXCarbon trading volume remained modest at only 1.131 million tCO2e. The trading value reached IDR 58.87 billion. BEI noted that there were six Greenhouse Gas Emission Reduction Certificate (SPE-GRK) projects listed and 104 service users. 

 

BEI President Director Iman Rachman stated that the number of participants registered in the carbon exchange services has grown significantly to 104, compared to just 16 participants at its launch on September 26, 2023. 

 

Recently, IDXCarbon achieved a cumulative trade of 1 million tons of carbon units. Iman attributed this success to significant contributions from BEI-listed companies and their subsidiaries, which accounted for approximately 83% of the total carbon trading volume. 

 

However, regarding the main purchasing countries in this international carbon trade, Iman explained that BEI cannot directly identify them, as most purchases are made through their domestic counterparts. 

 

“We hope these companies will continue to set an example, inspiring other businesses in Indonesia to actively participate in this evolving and dynamic market,” said Iman at the First International Carbon Trading Launch through IDXCarbon at the Indonesia Stock Exchange building on Monday. 

 

The Chairman of the Board of Commissioners of the Financial Services Authority (OJK), Mahendra Siregar, stated that OJK has facilitated domestic and international carbon unit trading through the carbon exchange, involving both local and foreign investors. 

 

“OJK appreciates the efforts of all stakeholders involved in ensuring the successful implementation of this initiative,” said Mahendra. 

 

US and China Poised to Be Largest Buyers on Carbon Exchange 

 

Previously, Kiwoom Sekuritas Indonesia predicted that several industrialized nations with high carbon emissions could become the main buyers of carbon traded on the Indonesia Carbon Exchange or IDXCarbon. 

 

Oktavianus Audi Kasmarandana, Head of Marketing, Strategy, and Planning at Kiwoom Sekuritas Indonesia, stated that industrial countries generating significant carbon emissions, such as the United States, are likely to be key customers of carbon trading in Indonesia. 

 

“Additionally, companies from the European Union, Japan, and China have the potential to be the largest buyers of carbon credits on IDXCarbon,” said Oktavianus, as confirmed by Katadata.co.id on Wednesday, January 15. 

 

Oktavianus noted that a current challenge for Indonesia’s carbon exchange is the lack of market liquidity. Allowing foreign investors to access carbon units is expected to boost liquidity and carbon exchange activity. 

 

Indonesia’s carbon exchange will become more attractive to foreign investors if regulators provide incentive programs and product innovations. Oktavianus believes that the long-term demand to achieve global net-zero emissions and the introduction of additional carbon exchange products will increase transaction volumes in the future. 

 

“Some countries with limited resources will likely seek alternatives to meet the Paris Agreement targets,” he said. 

 

Oktavianus emphasized that Indonesia could capitalize on its abundant carbon credit resources, from tropical forests to renewable energy potential, providing a strong foundation for carbon credits.

 

“Furthermore, regulatory support through related policies and the National Registration System (SRN PPI), along with the government’s commitment to reducing greenhouse gas emissions by 31% independently and 43% with international support by 2030, will serve as catalysts for the carbon exchange,” he added. 

Original article here
This article is published in partnership with Katadata