Director of Digital Asset Supervision of the Financial Services Authority (OJK) Lufaldy Ernanda and his staff paid a working visit to PT Great Giant Pineapple (GGP) Terbanggi Besar, Central Lampung, Tuesday (23/5).
During the visit, Lufaldy said that currently the Draft OJK Regulation (RPOJK) regarding the carbon exchange is being prepared and hopefully it can be released in September 2023 so that the carbon exchange can ‘Go Live’ at the end of this year.
“Today we are exchanging ideas with private companies about the potential to contribute to the national strategy to reduce emissions nationally. “We see that Great Giant Pineapple is one of the companies that has made very good progress in reducing emissions,” said Lufaldy. Seeing its potential, GGP in reducing emissions in the future could become one of the pioneers in agricultural companies on the national carbon exchange, he continued.
“The system is the same as other carbon exchanges, GPP can register its company later, whether it is positioned as a buyer or seller, depending on the results of the assessment of GGP’s friends,” he said.
Lufaldy explained that the scheme will be registered according to its emissions. If there is a potential for an emissions reduction project which can later be registered as a GHG Emission Reduction Certificate (SPEGRK), it means the position will be a seller, but if later you want to go to net zero, which can be paid in installments from now on, it means positioning as a buyer.
OJK guests and their entourage were warmly received by Sn. Great Giant Foods Lampung Sustainability Manager Arief Fatullah accompanied by Sustainable Farming and Climate GGF Julius Sugarjanto at the PT GGP Training Center.
On this occasion, both parties gave each other presentations regarding the processes being carried out in efforts 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 a secondary market for trading carbon certificates. 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, said Lufaldy.
Lufaldy explained that carbon trading is currently an issue that is attracting the attention of all parties, including investors at home and abroad. The government is currently reportedly completing regulations to operationalize carbon trading.
Carbon trading is covered by Presidential Regulation (Perpres) No. 98 of 2021 concerning the implementation of the economic value of carbon and Minister of Environment and Forestry Regulation No. 21 of 2022 concerning Procedures for Implementing the Economic Value of Carbon. Based on these provisions, the carbon exchange is a stock exchange. Supervision and regulation of the carbon exchange will be carried out by the Financial Services Authority (OJK) as regulated in Law No. 4 of 2023 concerning Development and Strengthening of the Financial Sector.
The main points of carbon exchange regulation in the RPOJK are being prepared. These include the definition of a GHG Emission Reduction Certificate (SPEGRK) and Technical Approval of Upper Emission Limits for Business Actors (PTBAE-PU). “Apart from that, business activities, capital and carbon exchange organizers will also be regulated which includes the types of activities and products traded,” concluded Lufaldy.
