Indonesia’s president launches carbon emissions trading

Indonesia’s President Joko Widodo speaks about the planned new capital Nusantara, at Ecosperity Week in Singapore June 7, 2023. REUTERS/Edgar Su/File photo

JAKARTA  – Indonesian President Joko Widodo on Tuesday launched his country’s first carbon emission trading, with the aim of creating a market to fund efforts to reduce greenhouse gas emissions and become a major player in global carbon trade.

Indonesia, an archipelago home to the world’s third largest area of rainforest, is also one of the world’s top greenhouse gas emitters. The Southeast Asian country has set a target of reaching carbon neutrality by 2060.

Thirteen transactions representing carbon credits for nearly 460,000 metric tons of carbon dioxide equivalent (CO2e) were traded during the launch, priced at 69,600 rupiah ($4.51) per ton, according to a trading board at the Indonesia Stock Exchange, which facilitates the transactions.

All of them were from geothermal projects in North Sulawesi, owned by PT Pertamina Geothermal Energy.

Jokowi, as the president is popularly known, said Indonesia has tremendous potential for carbon reduction efforts and its carbon market could grow to reach 3,000 trillion rupiah ($194.30 billion).

In its initial stage, trading will be voluntary, Luhut Pandjaitan, a senior minister overseeing regulations for carbon pricing, said during the launch.

($1 = 15,440.0000 rupiah)