IBC highlights huge carbon market potential of RI

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Jakarta(ANTARA) –
William Sabandar, chief operating officer (COO) of the Indonesian Business Council (IBC), said Indonesia’s carbon market has great potential if supported by a well-managed ecosystem.

He said that the carbon trading market plays an important role in stimulating the domestic economic growth by 8%.

“If the Indonesian government wants to grow its economy by 8 percent, if Indonesia wants to be a country recognized globally, then the carbon market is an opportunity to do so,” he added in a statement issued in Jakarta on Friday.

Speaking at the Action for a Sustainable Future Economy, or Katadata SAFE 2024, he said the carbon price on the European Carbon Exchange has now reached 100 euros per tonne of CO2.

This figure is significant when compared to the carbon price of $2 per ton of CO2 on domestic exchanges.

“In Norway, the price is already $50, and in Europe, in general, it’s already 100 euros. Yesterday, we started at $2, so we’re still a long way off,” he said.

One obstacle is that Indonesia has yet to establish a carbon market ecosystem, he said, though he praised the Indonesia Stock Exchange for launching IDX Carbon last year.

“Last year, the IDX carbon market was launched and trading is currently taking place, although it is still far from reaching significant levels,” he noted.

William said he was confident that once the carbon trading ecosystem is established, assuming carbon prices are in line with the European market, the transaction value will reach 160 trillion rupiah.

However, achieving this goal requires a complete ecosystem.

“If the price is $5 per ton, we are not just talking about 8 trillion rupiah, but we can talk about up to 16 trillion rupiah. The question is whether the carbon market ecosystem will be seriously developed,” he said.

IBC is an association of entrepreneurs dedicated to improving Indonesia’s competitiveness and economic growth through research.

In fulfilling its mission, IBC focuses on four research pillars, namely economic growth research, human resource development research, strengthening governance discussions, and innovation and climate discussions.

One of the topics promoted by the IBC through its fourth pillar is the role of carbon trading in accelerating economic development and meeting commitments to reduce greenhouse gas emissions.

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