Officially Launched: Transaction Fees at the Indonesia Carbon Exchange

Indonesia's Carbon Exchange (IDXCarbon) was officially launched on Tuesday, September 26, 2023, by President Joko Widodo. The Financial Services Authority (OJK) appointed the Indonesia Stock Exchange (BEI) as the carbon exchange organizer (PBK).

Based on Circular Letter 00013/BEI/09-2023 concerning Carbon Exchange Service Fees, the BEI stated that it will not charge a carbon unit registration fee. Carbon exchange transaction fees are divided into four market types.

First, for the PBK regular market, the transaction fee charged is 0.11% of the transaction value.

Second, for the PBK negotiation market, the transaction fee is set at 0.11% of the transaction value.

Third, for the PBK auction market, a transaction fee of 0.22% of the transaction value is charged. The same applies to the PBK non-regular market, which also has a transaction fee of 0.22%.

"The payment of transaction fees as stipulated in point 2 of this Circular Letter includes Value Added Tax but does not include other tax obligations (if any) payable through the PBK as the Withholding Agent," states the circular letter signed by BEI President Director Iman Rachman on Wednesday, September 20, 2023.

However, for the initial phase, the BEI will provide a transaction fee incentive for PBK by cutting the fee by 50%. This discount is valid until October 31, 2023.

Therefore, transaction fees for the regular and negotiation markets will only be charged at 0.05% of the transaction value. Meanwhile, for the auction and non-regular markets, only 0.11% will be charged.

The BEI President Director explained that IDXCarbon is a significant milestone for Indonesia's decarbonization commitment towards Net Zero Emission by 2060.

"Through the provision of a platform that prioritizes user experience, it is hoped that all businesses can easily obtain the benefits of carbon trading," said Iman in his press release on Tuesday, September 26, 2023.