OJK Strengthens Carbon Pricing Framework for Domestic Market

Jakarta (ANTARA) - The acting Chairman and Deputy Chairman of the Financial Services Authority (OJK), Friderica Widyasari Dewi, has stated that strengthening the national carbon pricing framework is a key element in building a credible, transparent, and accountable domestic carbon market ecosystem.

“By reaffirming various carbon economic instruments, the government is encouraging the formation of a credible, transparent, and accountable domestic carbon market ecosystem,” said Friderica, also known as Kiki, at The 2nd Indonesia Climate Banking Forum in Jakarta, Thursday.

The framework is expected to provide clear carbon price signals for businesses while also strengthening the integrity of national climate policies. This is also in line with Indonesia’s vision of achieving net-zero emissions by 2060.

On the same occasion, the OJK also appreciated the commitment of the banking industry in strengthening sustainable finance practices, including through the development of green financing instruments and the implementation of climate risk management.

“In parallel, we are developing a more comprehensive policy ecosystem through the improvement of the Indonesian Sustainable Finance Taxonomy, the establishment of the Indonesian Carbon Exchange, and the implementation of a climate risk management framework and scenario analysis for the banking industry,” she said.

Kiki added that the Indonesian Sustainable Finance Taxonomy provides a clear classification for green and transition activities. Meanwhile, the carbon exchange supports transparent price discovery mechanisms and the provision of market-based instruments in managing carbon economic value and reducing greenhouse gas emissions.

All of these instruments form the foundation of an integrated policy to support Indonesia’s transition agenda while maintaining the stability of the financial system.