Back in January of this year, Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (P2SK Law) granted the authority to regulate and oversee financial services activities in the carbon exchange sector to the Financial Services Authority (Otoritas Jasa Keuangan or “OJK“). As a follow-up to this authority, OJK has issued:
- OJK Regulation No. 14 of 2023 on Carbon Trading through Carbon Exchange, which contains the guideline and reference for carbon exchange operators as well as OJK to regulate, supervise, and coordinate with relevant ministries or institutions for carbon trading in Indonesia through the nation’s carbon exchange.
- OJK Circular Letter No. 12/SEOJK.04/2023 on the Procedures for Organising Carbon Trading through Carbon Exchange.
Concurrently with the two rules, OJK approved PT Bursa Efek Indonesia (the operator of the Indonesia Stock Exchange, or “IDX“) to become the operator of the carbon exchange. Upon such approval, IDX promptly issued a set of regulations to allow business owners to commence trading in the exchange. Lastly, on 26 September, President Joko Widodo officially launched the carbon exchange.
For more information, click here to read the full Legal Update.
