From Carbon Trading to Transition Finance: Institutional Alignment in Indonesia (Journal of Economic Studies and Analytics)
SaveSummary
- The Indonesia Stock Exchange launched IDXCarbon in September 2023 under OJK Regulation No. 14 of 2023, followed by an announcement in January 2025 regarding international carbon unit trading.p.2
- Presidential Regulation No. 110 of 2025 established a national framework for carbon economic value instruments, superseding Presidential Regulation No. 98 of 2021.p.2
- OJK issued updates to the Indonesia Taxonomy for Sustainable Finance (TKBI) Version 3 on 31 March 2026, adding technical screening criteria for manufacturing sectors and consumer finance guidelines.p.2
- PADK No. 6 of 2026 was enacted on 24 July 2026, updating exchange implementation provisions and superseding Circular No. 12/SEOJK.04/2023.p.9
Key insights
- Trading a registered carbon unit does not automatically qualify a project, firm, or portfolio under the Indonesia Sustainable Finance Taxonomy (TKBI).p.11
- The Carbon Unit Registry System (SRUK) manages carbon-unit information, whereas the national climate-action registry (SRN PPI) tracks mitigation and adaptation actions.p.8
- TKBI Version 3 added technical screening criteria for manufacturing subsectors including basic chemicals, recycled plastics, synthetic rubber, glass, textiles, apparel, footwear, and low-carbon gases.p.10
- TKBI Version 3 introduced tools such as sunsetting criteria, grandfathering mechanisms, and entity- or portfolio-level assessments to address dynamic transition timelines.p.10
- The regulatory framework created a temporary 3-month bridge after 6 July 2026 for ministry-recorded units to trade while SRUK became operational.p.9
- Information verification requires separating unit issuance tracking from activity-level taxonomy screening, preventing substitution between distinct environmental records.p.4
- TKBI is published by OJK as guidance to orient capital allocation, with plans to move toward a binding regulatory framework in the future.p.10
Funders mentioned
Topics and entities
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