Efforts to Energize Indonesia's Lackluster Carbon Market

The Financial Services Authority (OJK) is set to unveil strategic decisions to enhance and invigorate the carbon market. Lufaldy Ernanda, OJK's Director of Carbon Market Supervision, stated that the Carbon Market Steering Committee has recently convened to formulate several strategic policies. "There's a plethora of improvements needed. We recognize the necessity for regulatory collaboration," he stated on Mar. 25.

On Mar. 20, the Indonesian Business Council (IBC) submitted recommendations for carbon market development to the OJK. "IBC has conducted extensive research and compiled recommendations for building an innovative, competitive and impactful carbon market," Sofyan Djalil, CEO of IBC, said. Short-term recommendations include establishing a Carbon Market Knowledge Center, enhancing the Climate Change Control National Registration System (SRN-PPI) for national integration, and urging the public sector to delineate and calculate emission limits at the entity level.