By Romel S. Gurky
Indonesia Commodity & Derivatives Exchange (ICDX) announced on Wednesday that it has officially received approval from the Commodity Futures Trading Regulatory Agency (Bappebti) to operate as the official exchange for Renewable Energy Certificate (REC) trading.
The new platform will facilitate the trading of physical contracts for RECs, which certify the production of electricity from renewable sources such as solar, wind, hydro, and geothermal. A REC is issued for every 1 MWh of electricity generated from these sources and will play a key role in helping businesses meet emission reduction targets, including the Net-Zero Emission goal.
Fajar Wibhiyadi, CEO of ICDX, emphasized that the approval aligns with the Indonesian government’s commitment to accelerating renewable energy growth. He added, “This exchange will provide a transparent and reliable platform for REC transactions, enabling companies to meet their Scope 2 emissions reporting requirements and contribute to Indonesia’s clean energy goals.”
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The introduction of this REC trading market also positions Indonesia alongside other countries, such as India, the U.S., and Singapore, that have established similar platforms for carbon-neutral technologies, the company said.
Tirta Karma Sanjaya, Head of Bappebti, highlighted the importance of this new market for increasing the value of renewable energy and incentivizing the development of new clean energy projects in Indonesia. The REC system will help improve transparency and traceability in the renewable energy sector, providing businesses with credible instruments for reporting energy use and emissions.
This move is part of Indonesia’s broader effort to tap into its massive renewable energy potential, which is estimated to reach 4,686 Giga Watts (GW) by 2024, coming from solar, wind, hydro, bioenergy, geothermal, and ocean currents.
Editing by Alexander Ginting
