OJK Visits GGP Regarding Plan to Launch Carbon Exchange

OJK Visits GGP Regarding Plan to Launch Carbon Exchange

Director of Digital Asset Supervision of the Financial Services Authority (OJK) Lufaldy Ernanda and his staff paid a working visit at PT Great Giant Pineapple (GGP) Terbanggibesar, Central Lampung, Tuesday (23/5).

During the visit, Lufaldy, said that currently the OJK Draft Regulation (RPOJK) on carbon exchanges is being prepared and hopefully can be released in September 2023 so that carbon exchanges can ‘Go Live’ later this year.

“Today we are exchanging ideas with private companies on the potential to contribute to national strategies in reducing emissions nationally. We see Great Giant Pineapple is one of the companies that has made very good progress in reducing emissions,” Lufaldy said.

Seeing its potential, GGP in reducing emissions in the future can become one of the pioneers in agricultural companies on the national carbon exchange, he continued.

“In the same system, like other carbon exchanges, GPP can register its company later whether it positions as a buyer or seller depending on the results of the assessment of GGP friends,” he said.

Lufaldy explained, for example, what kind of emissions he wants, the scheme will be registered. If there are potential emission reduction projects that can later be registered as GHG Emission Reduction Certificates (SPEGRK), it means that the position is a seller, but if you want to go to net zero, starting to be paid in installments from now on, it means positioning as a buyer.

OJK guests and their entourage were warmly received by Sn. Manager Sustainability Great Giant Foods Lampung Arief Fatullah accompanied by Sustainaible Farming and Climate GGF Julius Sugarjanto in the VIP rung of the Training Center Building.

On that occasion, both parties gave each other presentations related to the process being carried out in an effort to reduce greenhouse gas emissions.
The carbon exchange is being prepared to launch soon. Various regulatory infrastructures are currently being discussed so that carbon exchanges can become secondary markets for carbon certificate trading. In the process, it is important for the government to listen and receive input from the public so that the carbon exchange can support Indonesia’s climate change control actions, Lufaldy said.

Lufaldy, explained that carbon trading is currently an issue that attracts attention for all parties, including investors at home and abroad. The government, he said, is currently completing regulations to operationalize carbon trading.

Carbon trading is under the umbrella of Presidential Regulation (Perpres) No. 98 of 2021 concerning the implementation of carbon economic value and Minister of Environment and Forestry Regulation No. 21 of 2022 concerning Governance of the Application of Carbon Economic Value.

Under these provisions, a carbon exchange is a stock exchange. Supervision and regulation of carbon exchanges will be carried out by the Financial Services Authority (OJK) as stipulated in Law No. 4 of 2023 concerning the Development and Strengthening of the Financial Sector.

The main points of regulating carbon exchanges in the prepared RPOJK. Among them are the definition of GHG Emission Reduction Certificate (SPEGRK) and Technical Approval of Upper Emission Limit for Business Actors (PTBAE-PU). In addition, business activities, capital, and carbon exchange operators will also be regulated which include the types of activities and products traded, Lufaldy concluded.