The Indonesian government has given authority to the Financial Services Authority (OJK) to regulate the carbon trading governance within the country. Carbon trading will attract green investment through carbon trading transactions. The mechanism will be established within Indonesia's carbon exchange and will be open to all businesses that register with the Ministry of Environment and Forestry. However, the details of its implementation are yet to be disclosed.
The Minister of Investment, Bahlil Lahadalia, said that carbon trading only applies to domestic exchanges and prices cannot be sold in foreign markets. He believes that implementing carbon trading can generate significant income for the country since Indonesia has a large CO2 storage reserve. The Ministry of Environment and Forestry will be the first filter for companies that want to participate in carbon trading, responsible for certifying companies before they trade. The Energy and Mineral Resources Ministry recently launched a carbon trading mechanism in the power generation sector, which will be applicable to coal-fired power plants.
