On September 26, 2023, President Joko Widodo (Jokowi) will open the Carbon Exchange, coordinated by the Indonesia Stock Exchange (BEI), marking an important milestone in the Indonesian financial scene. This landmark event advances Indonesia’s sustainable and ecologically friendly financial sector.
Inauguration: A Special Event
Tuesday, September 26, 2023 will mark the launch of the Indonesian Carbon Exchange at the Indonesia Stock Exchange’s main hall. By inaugurating the Indonesian Carbon Exchange, President Jokowi, the principal guest of honor, is anticipated to lead this revolutionary project.
The President Jokowi-led inauguration, from 09:27 AM to 09:30 AM, is poised to be a historic day in Indonesia’s financial history. A distinguished retinue of ministries, Financial Services Authority (OJK) executives, Indonesian Parliament (DPR RI) lawmakers, and BEI will accompany the President.
The President of Indonesia will sign the inauguration plaque from 09:30 to 09:32 AM, commemorating the start of this new financial platform, according to the invitation.
BEI Leads Carbon Exchange Organization: A Navigational Overview
The Indonesia Stock Exchange (BEI), chosen by the Financial Services Authority (OJK) as the Carbon Exchange (PBK) organizer, has been meticulously clarifying the requirements and procedural complexity for companies seeking to utilize it.
OJK will commence trading next week, and BEI will arrange. After the appropriate Commissioner’s Council Member announces it, the business licence is issued, a vital prelude to this momentous step. This vital business permission grants BEI the valued title of Carbon Exchange Organizer and is founded in Financial Services Authority Regulation (POJK) Number 14 of 2023, which governs Carbon Trading.
And then, this business authorization also follows the Financial Services Authority Circular Letter (SEOJK) Number 12/SEOJK.04/2023, which details Carbon Trading Procedures.
BEI’s Carbon Exchange Role and Blueprint: Shaping the Future
BEI has worked tirelessly developing carbon trading strategies and is ready to launch a trial operation. And then, this effort is supported by a thorough set of requirements and procedures for users.
Prerequisites for Users: Negotiating Entry Requirements
To utilize it, applicants must meet nine conditions. These prerequisites include:
- Designation of a responsible official to use PBK facilities.
- Attending PBK training.
- Corporate email using the company’s domain.
- The Carbon Exchange needs two user representatives who have undergone PBK training.
- Aspiring users must pay the registration cost.
- Opening an operational account with a BI-FAST/BI-RTGS banking institution.
- Submission of the latest annual financial reports, revealing financial soundness.
- Local users get articles of association, taxpayer registration number (NPWP), and
- Business Identification Number.
- Providing foreign-user-specific documents or a legal entity identity.
Instructions for Carbon Exchange Aspirants: Journey Navigation
Five steps required to join:
- Prospective Carbon Exchange users complete a detailed registration form to apply.
- Can the PBK require more documentation from applicants to strengthen their case.
- Prospective users may need a securities account with a Stock Exchange Member.
- A thorough evaluation by the PBK that begins within five working days of receiving full information from potential users.
- The five-day confirmation of approval or rejection to potential users after the evaluation procedure.
Transaction Method: Carbon exchange terrain navigation
A well-structured transactional journey includes:
- Start a KSEI transfer to user fund account for the desired purchase amount.
- The Carbon Exchange credits the monies to the user’s trading account.
- Allowing customers to place purchase quotations that match their trading account money.
- After harmonising quotations, monies debited and carbon units added to the owner’s inventory.
- And then, a detailed Trade Confirmation recording the transactions, including end-of-month reconciliation to account for transaction costs.
BEI Preparations: Creating Carbon Trading Future
BEI’s Director of Development, Jeffrey Hendrik, is leading the Carbon Exchange regulatory effort. At this point, building a carbon trading infrastructure and ecosystem is the priority.
Moreover, this complex project focuses on balanced supply and demand, improved trading mechanisms, and regulatory control. Alongside BEI, the Indonesia Central Securities Depository (KSEI) will help settle trading funds.
As Indonesia prepares to transition to carbon trading, the Carbon Exchange’s September 26, 2023, opening signals a new financial era. Finally, it represents Indonesia’s commitment to sustainability, environmental care, and a future where carbon trading helps create a greener, more affluent future.
