POLICY
JAKARTA (FORESTHINTS.NEWS) - In a landmark move, the Ministry of Environment and Forestry (MOEF) and the Financial Services Authority (OJK) have officially come together to enhance cooperation and coordination in the implementation of their respective duties and functions, with a particular focus on advancing the Carbon Exchange initiative.
In this regard, a Memorandum of Understanding (MoU) was signed (Jul 18) in Jakarta by Minister of Environment and Forestry Siti Nurbaya and Chairman of the OJK Board of Commissioners Mahendra Siregar. This builds upon the previous MoU between MOEF and OJK from May 2014.
The MoU aims to provide a comprehensive framework for the collaboration between MOEF and OJK, fostering a seamless partnership in accordance with existing laws and regulations, especially concerning the critical area of carbon trading.
“We are grateful that finally tonight we have been able to enter into a formal collaboration between the Ministry of Environment and Forestry and the OJK. I very much welcome and am very happy about this collaboration," said Minister Nurbaya.
According to the Minister, one of the key elements of this partnership will be their joint work in implementing the Economic Value of Carbon (NEK), including the development and promotion of a Carbon Exchange in Indonesia.
This aligns with the country's commitment to achieving its Nationally Determined Contributions (NDC) targets through the application of the Economic Value of Carbon.
Broad scope
The MoU's scope includes various crucial aspects such as harmonizing policies between the Environment and Forestry sector and the Financial Services sector, capacity building for Human Resources, as well as data exchange and utilization to support the MOEF and OJK's functions.
These functions also encompass the development of products, services and infrastructure for sustainable finance, the implementation of fair and efficient Carbon Unit trading and the formulation of sustainable finance-related policies.
MOEF and OJK will also team up to conduct research and surveys to formulate policies and promote development in the fields of Environment, Forestry, and Financial Services, while also sharing experts and resources in these sectors, as well as exploring other areas of cooperation within their respective authorities.
“We are looking forward to the joint efforts by MOEF and OJK in implementing the Economic Value of Carbon, including the Carbon Exchange," Minister Nurbaya asserted.
“The implementation of carbon pricing requires sufficient understanding and knowledge. It is very important for the OJK to be involved in policies related to the Environment and Forestry sector, especially in the application of an appropriate and accurate SRN-PPI (National Registry System on Climate Change Control) which complements our national interests," she added.
"Our authorization system aims to facilitate business actors by improving the exchange and use of data to support the task of controlling the achievement of Nationally Determined Contribution (NDC) targets as well as by implementing the development of products, services, and infrastructure for Sustainable Finance and trading of Carbon Units in an orderly, fair, and efficient manner. This will ensure a smooth two-way flow of information between the SRN-PPI and the Carbon Exchange," the Minister continued.
Valuable opportunity
Meanwhile, OJK Chairman Mahendra Siregar expressed enthusiasm for the partnership, highlighting the importance of addressing not only Indonesia's carbon-related challenges but also contributing to global efforts to combat climate change.
"It is truly a valuable opportunity for all of us at OJK to sign a Memorandum of Understanding which will serve as the basis for our cooperation into the future," he said.
The establishment of the Indonesian Carbon Exchange is a direct result of the enactment of Law 4 of 2023 on Financial Sector Development and Strengthening (P2SK). Relevant regulations will be issued by OJK subsequently to ensure a clear and structured approach to carbon trading.
The formation of the Carbon Exchange has also garnered strong support from the legislative side, with constructive consultations held between OJK and Commission XI of the Indonesian Parliament on the OJK draft regulation.
"This work embodies our joint efforts not only to solve Indonesia's problems, but also global problems because of the large carbon emission reduction potential that Indonesia has," Mahendra explained.
The MoU signing ceremony was attended by various esteemed officials, including MOEF Secretary General Bambang Hendroyono, Director-General of Climate Change Control Laksmi Dewanthi, OJK Commissioner/Chief Executive for Capital Market, Derivative Products and Carbon Exchange Supervision Inarno Djajadi, President Director of BPDLH Djoko Tri Haryanto, and other representatives from both MOEF and OJK.
This collaboration marks a significant step towards bolstering Indonesia's commitment to sustainable practices and combating climate change while reinforcing the bond between the Environment and Forestry sector and the Financial Services sector in addressing pressing environmental challenges.
Mahendra also explained that the collaboration will serve as the foundation for linking SRN-PPI with the recording of carbon stock trading through OJK regulations.
"This is a significant milestone, paving the way for various collaborations in human resources, information exchange, promotion, outreach, and roadshows within the country and abroad. These efforts will better prepare society, markets, and business actors to embrace the Indonesian carbon exchange," he enthused.
"This collaboration between the Ministry of Environment and Forestry and the OJK has noble aims and functions, and the complications in implementing it are enormous. Nonetheless, we should welcome it and may God bless us in the hard work and challenges it entails," Minister Nurbaya said in conclusion.
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POLICY
JAKARTA (FORESTHINTS.NEWS) - In a landmark move, the Ministry of Environment and Forestry (MOEF) and the Financial Services Authority (OJK) have officially come together to enhance cooperation and coordination in the implementation of their respective duties and functions, with a particular focus on advancing the Carbon Exchange initiative.
In this regard, a Memorandum of Understanding (MoU) was signed (Jul 18) in Jakarta by Minister of Environment and Forestry Siti Nurbaya and Chairman of the OJK Board of Commissioners Mahendra Siregar. This builds upon the previous MoU between MOEF and OJK from May 2014.
The MoU aims to provide a comprehensive framework for the collaboration between MOEF and OJK, fostering a seamless partnership in accordance with existing laws and regulations, especially concerning the critical area of carbon trading.
“We are grateful that finally tonight we have been able to enter into a formal collaboration between the Ministry of Environment and Forestry and the OJK. I very much welcome and am very happy about this collaboration," said Minister Nurbaya.
According to the Minister, one of the key elements of this partnership will be their joint work in implementing the Economic Value of Carbon (NEK), including the development and promotion of a Carbon Exchange in Indonesia.
This aligns with the country's commitment to achieving its Nationally Determined Contributions (NDC) targets through the application of the Economic Value of Carbon.
Broad scope
The MoU's scope includes various crucial aspects such as harmonizing policies between the Environment and Forestry sector and the Financial Services sector, capacity building for Human Resources, as well as data exchange and utilization to support the MOEF and OJK's functions.
These functions also encompass the development of products, services and infrastructure for sustainable finance, the implementation of fair and efficient Carbon Unit trading and the formulation of sustainable finance-related policies.
MOEF and OJK will also team up to conduct research and surveys to formulate policies and promote development in the fields of Environment, Forestry, and Financial Services, while also sharing experts and resources in these sectors, as well as exploring other areas of cooperation within their respective authorities.
“We are looking forward to the joint efforts by MOEF and OJK in implementing the Economic Value of Carbon, including the Carbon Exchange," Minister Nurbaya asserted.
“The implementation of carbon pricing requires sufficient understanding and knowledge. It is very important for the OJK to be involved in policies related to the Environment and Forestry sector, especially in the application of an appropriate and accurate SRN-PPI (National Registry System on Climate Change Control) which complements our national interests," she added.
"Our authorization system aims to facilitate business actors by improving the exchange and use of data to support the task of controlling the achievement of Nationally Determined Contribution (NDC) targets as well as by implementing the development of products, services, and infrastructure for Sustainable Finance and trading of Carbon Units in an orderly, fair, and efficient manner. This will ensure a smooth two-way flow of information between the SRN-PPI and the Carbon Exchange," the Minister continued.
Valuable opportunity
Meanwhile, OJK Chairman Mahendra Siregar expressed enthusiasm for the partnership, highlighting the importance of addressing not only Indonesia's carbon-related challenges but also contributing to global efforts to combat climate change.
"It is truly a valuable opportunity for all of us at OJK to sign a Memorandum of Understanding which will serve as the basis for our cooperation into the future," he said.
The establishment of the Indonesian Carbon Exchange is a direct result of the enactment of Law 4 of 2023 on Financial Sector Development and Strengthening (P2SK). Relevant regulations will be issued by OJK subsequently to ensure a clear and structured approach to carbon trading.
The formation of the Carbon Exchange has also garnered strong support from the legislative side, with constructive consultations held between OJK and Commission XI of the Indonesian Parliament on the OJK draft regulation.
"This work embodies our joint efforts not only to solve Indonesia's problems, but also global problems because of the large carbon emission reduction potential that Indonesia has," Mahendra explained.
The MoU signing ceremony was attended by various esteemed officials, including MOEF Secretary General Bambang Hendroyono, Director-General of Climate Change Control Laksmi Dewanthi, OJK Commissioner/Chief Executive for Capital Market, Derivative Products and Carbon Exchange Supervision Inarno Djajadi, President Director of BPDLH Djoko Tri Haryanto, and other representatives from both MOEF and OJK.
This collaboration marks a significant step towards bolstering Indonesia's commitment to sustainable practices and combating climate change while reinforcing the bond between the Environment and Forestry sector and the Financial Services sector in addressing pressing environmental challenges.
Mahendra also explained that the collaboration will serve as the foundation for linking SRN-PPI with the recording of carbon stock trading through OJK regulations.
"This is a significant milestone, paving the way for various collaborations in human resources, information exchange, promotion, outreach, and roadshows within the country and abroad. These efforts will better prepare society, markets, and business actors to embrace the Indonesian carbon exchange," he enthused.
"This collaboration between the Ministry of Environment and Forestry and the OJK has noble aims and functions, and the complications in implementing it are enormous. Nonetheless, we should welcome it and may God bless us in the hard work and challenges it entails," Minister Nurbaya said in conclusion.
RELATED STORIES
