PLN Ready to Enter the Indonesian Carbon Exchange

A significant transformation is taking place in Indonesia's carbon trading landscape with the entry of PT PLN (Persero) into the Indonesian Carbon Exchange (IDXCarbon). Launched by President Joko Widodo in the Main Hall of PT Bursa Efek Indonesia (BEI), IDXCarbon is now growing dynamically and plays an important role in the global carbon market.

With great potential in carbon trading, PT PLN is expected to become the largest trader on IDXCarbon. The company aims to trade nearly 1 million tonnes of CO2, demonstrating its commitment to supporting government efforts to reduce emissions and accelerate the energy transition.

Siti Nurbaya Bakar, Minister of Environment and Forestry of Indonesia, highlighted PLN's role as an important part of the country's energy transition strategy. "This step marks significant progress in climate change mitigation efforts," he said.

PLN CEO, Darmawan Prasodjo, emphasized the company's readiness to lead emissions reduction initiatives. "We are at the forefront of carbon trading in Indonesia, actively contributing to the development of a strong carbon trading ecosystem," he said. PLN's participation in the pilot project has paved the way for an effective carbon trading system in the country.

Demonstrating its commitment, PLN received the first Emission Reduction Certificate (SPE) in Indonesia through a non-conversion and international mechanism. "We are ready to make a big impact on IDXCarbon with large-scale emission reductions," added Darmawan.

PLN's approach to carbon trading includes direct emissions trading, direct emissions offsets, and offset trading via exchanges. The company has also developed the PLN Climate Click platform, facilitating carbon trading activities since September 8 2023.

With the upcoming arrival to IDXCarbon, PLN will become a leading SPE holder, enhancing its carbon trading capabilities through the PLN Climate Click application, a unique feature in the industry.

Darmawan also highlighted the role of the Muara Karang Block 3 Steam Gas Power Plant (PLTGU) in PLN's carbon market strategy. This plant, the first in Indonesia to use 100% regasified LNG, has succeeded in reducing almost 1 million tons of carbon dioxide by 2022. Equipped with the latest and most efficient gas turbine technology, this plant is an example of PLN's commitment to low-emission energy generation.

"PLN currently not only provides electricity but provides low-emission energy, mainly from new renewable energy sources," concluded Darmawan. The company's ambitious energy transition scenario aims to increase the share of renewable energy to 75% by 2040, with 25% of it coming from natural gas.

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