Indonesia Stock Exchange Inks MOU to Develop Carbon Market

Indonesia Stock Exchange (IDX), Indonesia’s national stock exchange, announced its intention to develop a trading system for a carbon exchange in Indonesia.

IDX has entered into an exploratory partnership with Singapore-based MetaVerse Green Exchange (MVGX), a green fintech firm that offers a digital green exchange licensed and regulated by the Monetary Authority of Singapore (MAS).

This development comes amid the Indonesian government’s plan to launch the country’s own emissions trading scheme by 2025 to incentivize domestic businesses in high-emitting industries to reduce their emissions.

To date, Indonesia is among 61 countries with established carbon pricing regulations and has committed to reducing its greenhouse gas emissions by 43% by 2030 with international support, whether through financing or new technologies.

Commenting on the partnership, Jeffrey Hendrik, IDX Director of Business Development, said: “IDX is currently preparing for the possibility of becoming a carbon exchange in Indonesia and started discussions with several parties to deepen our knowledge. We believe that this strategic partnership with MVGX can support us in building a robust carbon exchange infrastructure and ecosystem that will underpin the country’s plan to develop a sustainable finance ecosystem.”

Executive Chairman and Co-Founder of MVGX, Bo Bai added: “Today, carbon markets still continue to face challenges around lack of transparency, standardization, and liquidity, we are thrilled to be supporting IDX as they work towards meeting this critical milestone as part of Indonesia’s climate policy and as they raise the bar for green finance in the region.”

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