Central Lampung, 23 May 2023 – Director of Digital Asset Supervision of the Financial Services Authority (OJK), Lufaldy Ernanda, together with his staff, paid a working visit to PT Great Giant Pineapple (GGP) in Terbanggi Besar, Central Lampung.

During the visit, Lufaldy explained that the Draft OJK Regulation (RPOJK) on the carbon exchange is in the finalization stage and is targeted to be issued in September 2023, with the carbon exchange expected to go live by the end of the year.

“Today we are exchanging ideas with private companies about their potential contribution to the national strategy for reducing emissions. We see Great Giant Pineapple as one of the companies that has made very good progress in reducing emissions. Looking ahead, GGP could become one of the pioneers among agricultural companies in Indonesia’s carbon exchange,” Lufaldy said.

He further explained that the carbon exchange will operate similarly to other exchanges, where companies can register as buyers or sellers, depending on their emission reduction results. Companies with certified emission reduction projects will be positioned as sellers, while those pursuing net zero goals may act as buyers.

The OJK delegation was warmly welcomed by Arief Fatullah, Senior Sustainability Manager of Great Giant Foods Lampung, and Julius Sugarjanto, Sustainability Farming & Climate at GGF, at the PT GGP Training Center. Both parties exchanged presentations on ongoing initiatives to reduce greenhouse gas (GHG) emissions.

The carbon exchange is being prepared as a secondary market for trading carbon certificates, backed by a robust regulatory framework. According to Lufaldy, it is crucial for the government to involve stakeholders to ensure that the exchange effectively supports Indonesia’s climate change mitigation efforts.

He also highlighted that carbon trading has become a key area of interest, not only for domestic stakeholders but also for international investors. The regulatory foundation for this initiative is based on:

• Presidential Regulation (Perpres) No. 98/2021 on the Implementation of the Economic Value of Carbon.

• Minister of Environment and Forestry Regulation No. 21/2022 on Procedures for Implementing the Economic Value of Carbon.

• Law No. 4/2023 on the Development and Strengthening of the Financial Sector, which mandates OJK to oversee the carbon exchange.

Key regulatory elements under preparation in the RPOJK include:

• Definition of the GHG Emission Reduction Certificate (SPEGRK).

• Technical Approval of Upper Emission Limits for Business Actors (PTBAE-PU).

• Rules for business activities, capital, and carbon exchange organizers, including the types of activities and products that may be traded.

“Carbon trading is attracting the attention of all stakeholders. With the right regulations, the carbon exchange will strengthen Indonesia’s competitiveness and support our national climate agenda,” concluded Lufaldy.