The Government is continuing to “fine-tune” the regulatory environment for carbon trading in an endeavour to promote carbon trading in general as well as, more particularly, the amount of carbon trading that takes place though Indonesia’s Carbon Exchange, otherwise known as IDXCarbon.
Although IDXCarbon commenced operations in 2023, trading volumes remain modest. The relative lack of international participation in IDXCarbon trading activities is said to be a material contributing factor to the low IDXCarbon trading volumes.
The Financial Services Authority has issued a new regulation that, at least in part, is clearly intended to encourage/facilitate greater international participation in IDXCarbon trading activities as well as to promote investor confidence generally in IDXCarbon as a reliable trading platform.
In this article, the writer will review the main changes introduced by the new Financial Services Authority regulation as well as the significance or otherwise of these changes.
Author:
Bill Sullivan
bsullivan@cteolaw.com