IDX, ICDX Compete to Become Carbon Trading Operators

The Indonesia Stock Exchange (IDX) expressed its readiness if the government appointed the institution to organize carbon trading in Indonesia. IDX President Director Iman Rachman stated IDX and the Financial Services Authority (OJK) are conducting a joint study on the carbon trading mechanism, considering that this is the first time in Indonesia. IDX targets this study to be completed in the next ten weeks.

IDX also appointed consultants to study how carbon trading is carried out in other countries, including from the supply and demand side. "SRO [self-regulatory organization] is ready if appointed to organize carbon trading, whether we prepare the existing system, [through] the KPEI-KSEI [Indonesian Clearing Guarantee Corporation and Indonesian Central Securities Depository], directly carried out by the stock exchange or separately on the stock exchange. We carried out all the studies with the OJK," Iman said on Wednesday.

Meanwhile, Head of Carbon Market of the Indonesia Commodities Derivative Exchange (ICDX) Zulfal Faradis said that trading on carbon emission allowances and carbon credits would be more appropriate if held through commodity exchange. ICDX has had the initiative to become a provider of carbon trading systems. "However, we are still waiting and will follow the regulations issued by the government later," he said.