The Presidential Staff Office (KSP) and the Economic Team of President and Vice President-Elect Prabowo Subianto and Gibran Rakabuming Raka are working on establishing a carbon agency. This organization will be responsible for controlling climate change and managing carbon trading. 

Moeldoko, Head of the Presidential Staff Office, stated that under President Joko Widodo's administration, Indonesia has already developed several low-carbon policy frameworks within the National Medium-Term Development Plan (RPJMN) and has committed to reducing carbon emissions. 

"During this government transition, we hope that policies can be further accelerated under the next leadership," Moeldoko said during a Coordination Meeting on the Transition to a Green Economy and Carbon Economic Value Policy in Jakarta on Thursday. 

The meeting was attended by Moeldoko and Burhanuddin Abdullah, the Head of the Economic Team for President and Vice President-Elect Prabowo-Gibran for the 2024-2029 period, along with other officials from relevant ministries and agencies. 

Moeldoko suggested that the Presidential Staff Office form a task force to begin discussions on synchronizing and transitioning the implementation of carbon control policies. 

"My suggestion is to establish a task force first to structurally formulate the agency, which will facilitate the transition to forming the agency later," Moeldoko said. 

This task force will prepare the Government Regulation related to the establishment of the Climate Change Control and Carbon Trading Management Agency (BP3I-TNK) after the inauguration of the President and Vice President for the 2024-2029 period. The agency will be led by Prof. Dr. Laode Kamaluddin, a member of the Economic Team for President-Elect Prabowo Subianto, and Ishak Saing, Chief Expert of the Presidential Staff Office. 

Carbon Economy Potential 

Moeldoko highlighted Indonesia's financing challenges in meeting its carbon emission reduction targets by 2030. On the other hand, the potential for carbon trading is significant due to Indonesia's natural resources. Tropical forests, as well as marine and coastal biodiversity (blue carbon) such as mangroves and peatlands, can serve as carbon sinks and play a crucial role in addressing the climate crisis. 

"Indonesia can tap into the vast economic potential of the carbon market and become a significant source of state revenue, both through bilateral carbon trading and carbon exchange mechanisms," Moeldoko said. 

Meanwhile, Burhanuddin explained that fulfilling global commitments to reduce carbon emissions aligns with the "Eight Missions of Asta Cita of the President-Elect." The second pillar of Prabowo-Gibran's mission is to promote national self-reliance, including through a green economy. 

This will be implemented by establishing BP3I-TNK, which will be responsible for directing, managing, and overseeing sustainable climate change control. The agency will also aim to achieve carbon sovereignty by leveraging blockchain technology. 

"The hope is that everyone can coordinate in formulating the agency and revising Presidential Regulation 98 of 2021," Burhanuddin said. 

Carbon trading in Indonesia is regulated by Presidential Regulation No. 98 of 2021 and Minister of Environment and Forestry Regulation 21/2022. Carbon trading through the exchange was inaugurated by President Joko Widodo at the Indonesia Carbon Exchange (IDX Carbon) on September 26, 2023. 

The coordination meeting was also attended by Nani Hendiarti, Deputy 4 for Environmental and Forestry Management Coordination at the Coordinating Ministry for Maritime Affairs and Investment, and Laksmi Dhewanthi, Director General of Climate Change Control at the Ministry of Environment and Forestry. 

Original article here

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