Take Note, Requirements and Procedures to Enter the Carbon Exchange

The Carbon Exchange is scheduled to be inaugurated by President Joko Widodo tomorrow, Tuesday (26/09/23).

The Financial Services Authority (OJK) stated that it is ready to escort the Indonesia Stock Exchange (IDX) to hold this Carbon Exchange.

After being officially appointed as the organizer of the Carbon Exchange (PBK), the IDX also designed a carbon trading plan and an initial trading pilot project, including terms and procedures for Carbon Exchange service users.

These service users include all parties who have the right to use the IDX system and/or facilities.

Requirements to Become a Carbon Exchange Service User

1.    There are general requirements that must be met to become a user of Carbon Exchange services, which must:

a.    have an officer who is responsible for the use of facilities provided by the IDX;

b.   attend training related to the Carbon Exchange organized by the IDX;

c.    have an electronic mail address using the companys domain name;

d.   have at least 2 (two) Carbon Exchange Service Users who represent Carbon Exchange Service Users who have attended training organized by the IDX;

e.    pay the registration fee as a Carbon Exchange Service User;

f.     have an account at a bank that is connected to the BI-FAST and BIRTGS systems; and

g.   have annual financial statements for at least the last 1 (one) fiscal year.

2.    For prospective Carbon Exchange Service Users who are Indonesian legal entities must meet additional requirements, namely having the Companys Articles of Association that have been legalized, notified, or approved by the competent authority; and having a Taxpayer Identification Number (NPWP) and Business Identification Number (NIB).

3.    For prospective Carbon Exchange Service Users who are foreign parties must meet additional requirements, namely having an identity number (legal entity identifier) registered with the Regulatory Oversight Committee (ROC).

Procedure for Becoming a Carbon Exchange Service User

1.        To become a Carbon Exchange Service User, the prospective Carbon Exchange Service User must submit an application letter to the IDX using the specified form and submit documents in printed or electronic form as follows:

a.    certificate of training related to the Carbon Exchange organized by the IDX

b.   proof of payment of registration fees as a Carbon Exchange Service User; and

c.    annual financial statements for at least the last 1 (one) fiscal year.

d.   Articles of Association of the Company, NPWP and NIB (for Legal Entities)

e.    legal entity identifier and proof of registration with the Regulatory Oversight Committee (for foreign parties)

f.     other additional documents required

2.            IDX may request prospective Carbon Exchange Service Users to open a Securities Sub-Account

3.            No later than the 5th PBK Day (five) after the prospective Carbon Exchange Service User submits complete information and documents, IDX reviews the submitted documents

4.            Based on PBKs consideration, PBK is authorized to approve or refuse to give approval to the application

5.            No later than 5 (five) days after the entire review process is complete, the IDX will confirm by issuing a letter of approval as a user or a letter of refusal accompanied by the reasons.

6.            For prospective Carbon Exchange Service Users whose applications are rejected, may reapply.

Along with the submission of an approval letter as a Carbon Exchange Service User, the validated party will be given system user account information (user) from the IDX. Later the IDX will issue a user registration approval letter for employees of the Carbon Exchange Service User.