Jakarta – The Financial Services Authority (OJK) launched an official guidebook entitled “Knowing and Understanding Carbon Trading for the Financial Services Sector” on Tuesday, July 15, at the Main Hall of the Indonesia Stock Exchange (IDX), Jakarta, to prevent greenwashing practices in carbon trading in Indonesia.
The book launch was conducted by OJK Chairman of the Board of Commissioners, Mahendra Siregar, together with OJK Chief Executive Officer of Capital Market Supervision, Derivative Finance, and Carbon Exchange, Inarno Djajadi, as well as IDX President Director, Iman Rachman, and Indonesia Central Securities Depository President Director, Samsul Hidayat.
In his speech, Mahendra emphasised that strengthening carbon market literacy is one of the important prerequisites for building a credible and accountable carbon trading system.
“We are facing a real climate crisis. Carbon trading is one of the concrete solutions, but it must be implemented with prudence and integrity. We have designed this book as a comprehensive guide so that financial services sector players understand the flow, mechanism, and risks that may arise,” Mahendra said in a press release.
He also highlighted the importance of strict supervision amid the country’s growing carbon market. According to him, strong governance is necessary to prevent Indonesia from being trapped in manipulative practices such as emission data fraud, reporting errors, and greenwashing.
The book launch aligns with the mandate of Law Number 4 of 2023 on Financial Sector Development and Strengthening (PPSK Law), which grants the OJK the authority to regulate and supervise carbon trading in the secondary market.
IDX CEO Iman Rachman welcomed the collaboration between OJK and the Ministry of Environment and Forestry (MoEF) in ensuring the integration of the national carbon trading system with the National Registry System (SRN).
“Transparency and credibility are key for our carbon market to be recognised globally. This book is an important foundation to build investor and business confidence,” Iman explained.
Based on the latest data as of July 14, 2025, the performance of Indonesia’s carbon market exhibits a positive growth trend. The total transaction volume has reached 1,599,336 tonnes CO₂e with a transaction value of IDR 78 billion. The price of IDTBS carbon units was recorded at IDR 58,800 (USD 3.6) and IDTBS-RE at IDR 61,000 (USD 3.7).
Eight projects from the energy sector were active in the carbon market, including those of PT Pertamina Power Indonesia, PT Perkebunan Nusantara IV, and entities under the PLN Group. The number of service users increased dramatically from 16 to 113 active entities. Meanwhile, the total carbon retirement has reached 980,475 tonnes of CO₂e, indicating that market players are becoming increasingly active in implementing emission offsets.
Mahendra also mentioned that the development of the carbon market has entered the phase of strengthening policy instruments. Previously, the OJK had issued POJK Number 14/2023 and SE OJK Number 12/2023, and officially launched the Indonesian Carbon Exchange on September 26, 2023. Access to international carbon trading has been available since January 20, 2025.
For this achievement, IDX Carbon was awarded the international Best Official Carbon Exchange in an Emerging Market in the Carbon Positive Award 2025 by Green Cross United Kingdom.
Closing the launch, Mahendra emphasised that synergy between sectors is the key to a healthy and accountable carbon market ecosystem. He emphasised the importance of support from ministries, agencies, industry players and international partners to strengthen the transition to a green economy and support Indonesia’s Net-Zero Emission (NZE) target by 2060 or sooner.
“The carbon market is not just a buying and selling mechanism. It must be a real instrument in changing business behaviour towards sustainability,” Mahendra concluded. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)