Indonesia Carbon Exchange: Getting to Know Carbon Exchange Users

The Indonesia Stock Exchange (IDX) officially obtained the mandate as the organizer of the Carbon Exchange (PBK) appointed by the Financial Services Authority (OJK) with a business license as of September 18, 2022. 

So who are the parties that have the right to engage in this carbon exchange system?

These parties are referred to as Carbon Exchange Service Users. These service users include all parties who are entitled to use the system and/or facilities for the implementation of the Carbon Exchange in accordance with the IDX rules as the Organizer of the Carbon Exchange party.

Carbon Exchange service users include Emission Traders and Non-Emission Traders, Project Owners, and other parties that have received OJK approval.

IDX also applies the rules of the game for each of these service users regarding their authority to trade Technical Approval of Emission Upper Limits for Business Actors (PTBAE-PU) and Greenhouse Gas Emission Reduction Certificates (SPE-GRK).

First, the provisions on Emission Trader Business Actors. Only Emission Trader Business Actors have the right to obtain PTBAE-PU allocations in their purchases in the Auction Market. Provisions regarding Emission Trader Business Actors are as follows:

a)   May obtain PTBAE-PU allocations through purchases at the Auction Market

b)   May conduct sales and purchases of PTBAE-PU in the Regular and Negotiated Markets

c)    Can make sales and purchases of SPE-GRK in Regular and Negotiated Markets

d)   May purchase SPE-GRK in the Auction Market and Non-Regular Market

e)   May surrender PTBAE-PU and retire SPE-GRK.

Second, provisions on Non-Emissions Trading Business Actors. Non-emissions trading Business Actors may buy and sell SPE-GRK in certain markets, but not with PTBAE-PU. The only provisions regarding Non-Emissions Trading Business Actors are as follows:

a.            Cannot make sales and purchases of PTBAE-PU

b.           May conduct sales and purchases of SPE-GRK in the Regular Market and Negotiated Market

c.            May purchase SPE-GRK in the Auction Market and Non-Regular Market

d.           May conduct retirement of SPE-GRKs

Third, provisions for Project Owners. The Project Owner or project developer will offer their green project by selling SPE-GRK. The provisions for the Project Owner are as follows:

a.    Has the obligation to carry out the SPE-GRK registration process in accordance with the regulations regarding the registration of Carbon Units

b.   Can sell SPE-GRK in the Auction Market and Non-Regular Market.

It is hoped that the driving elements of the exchange can understand the terms and procedures for organizing the Carbon Exchange set by the IDX.