Indonesia can reduce carbon emissions nationally, globally: OJK

Indonesia can reduce carbon emissions nationally, globally: OJK

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Jakarta (ANTARA) – Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar believes that Indonesia has huge potential to reduce carbon emissions not only nationally but also globally.

Indonesia’s contribution globally can be assessed from the potential success of the carbon trading ecosystem.

“I see (the potential),” Siregar stated at the “National Seminar on Reducing Greenhouse Gas Emissions & Carbon Trading Opportunities in Indonesia” that was monitored virtually here on Monday.

“We are all calculating globally, and if Indonesia does not succeed in carrying out these (carbon trading), then we cannot be too optimistic that the world will succeed, because in other places, we will not find as much potential as in Indonesia in reducing carbon emissions,” he further remarked.

Apart from the potential success of the carbon trading ecosystem on the Carbon Exchange, Siregar drew attention to three other steps that Indonesia can take to become a major player in reducing carbon emissions in the world.

The first is peat restoration that is being carried out in East Tanjung Jabung, Jambi, and can be reused as agricultural land.

He called for the need for wider expansion of the program in various regions of Indonesia as a commitment to Nationally Determined Contribution (NDC).

Second, the government and stakeholders must work together to improve the socio-economic welfare of the community, as it is also part of the Sustainable Development Goals (SDGs).

“This is the basis of what is called the Triple Bottom Line of sustainable development, increasing social welfare, growing economic development, and maintaining and developing the environment, including its green aspects,” Siregar noted.

Related news: Carbon tax to give businesses alternative to reduce emissions: MoF

According to Siregar, the third step is the need to call for the implementation of environmental and economic sustainability policies throughout Indonesia and not just in Jambi, without neglecting the profitability aspect.

“Because there is a term that says the most sustainable project in the world has to be profitable at the same time. If not, sustainability will actually become a problem,” he stated.

In the meantime, Siregar revealed that the OJK will officially launch the Carbon Exchange on September 26, 2023. The Carbon Exchange is a system that regulates Carbon Trading or records ownership of Carbon Units.

As part of the preparations to welcome the Carbon Exchange, national seminars related to carbon trading have been held in Surabaya, Balikpapan, Makassar, Medan, and Jambi.

Jambi was the last province to hold the seminar. Jambi also drew praises from the OJK for being one of the provinces that has the potential to reduce carbon emissions.

He noted that the seminar was held with the aim of increasing capabilities and deepening the understanding of policy makers and stakeholders regarding regulations and carbon trading mechanisms.

Related news: Indonesia aims to cut emissions by 358 mln tons of CO2e

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