Indonesia launches carbon exchange to speed emission cuts

Stock market-managed effort comes as nation aims to meet reduction targets

20230926 Indonesia Stock Exchange 1

President Joko Widodo, center, speaks with officials on the occasion of the start of carbon trading at the Indonesia Stock Exchange on Sept. 26. (Photo courtesy of Presidential Secretariat)

ISMI DAMAYANTI, Nikkei staff writer

JAKARTA -- The Indonesia Stock Exchange (IDX) on Tuesday launched a carbon trading bourse, as the coal-dependent country seeks to mobilize market incentives to support its emission cut targets.

The Financial Services Authority (OJK) appointed the IDX as the operator of Indonesia's carbon trading market, following the passage of an omnibus law on the financial sector in February that includes mandatory carbon trading for coal power plant operators.

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