The Indonesia Carbon Exchange (IDXCarbon) could help the country develop industries while concurrently safeguarding the environment, according to Minister of State-Owned Enterprises (SOEs) Erick Thohir.

By optimizing IDXCarbon, launched by President Joko Widodo on September 26, the government could both support the industrialization process and mitigate the carbon emissions it generates, he stated.

“Industrialization produces CO2 (carbon dioxide) which ultimately leads to pollution. By integrating CO2 into the carbon exchange process, we aim to support industrialization while fulfilling our green emission responsibilities,” he noted in a statement received on Wednesday.

Thohir affirmed that his ministry continues to urge SOEs to serve as exemplars in the newly established carbon exchange. In this context, he lauded state oil and gas giant Pertamina for its role as a carbon unit provider in the initial transactions in the exchange.

According to IDXCarbon management, Pertamina New and Renewable Energy (PNRE) served as the first carbon unit provider on the exchange’s inaugural day of operation.

Several SOEs, such as Bank Mandiri, BNI Sekuritas, BRI Danareksa Sekuritas, Pertamina Hulu Energi, and Pertamina Patra Niaga, participated as carbon buyers on that day.

Numerous private companies also engaged in the transactions as buyers, including Bank Central Asia, Bank CIMB Niaga, CarbonX Bumi Harmoni, MMS Group Indonesia, Pelita Air Service, and TruClimate Dekarbonisasi Indonesia.

Thohir also emphasized the importance of all parties demonstrating their commitment to reducing carbon emissions.

He mentioned having instructed SOEs to implement greening programs, with the aim of reducing greenhouse gas emissions, such as the initiative to plant up to 100 thousand trees in collaboration with the community.

He explained that the program he initiated on Wednesday serves is one of the concrete actions to curb air pollution in Jakarta and its surrounding areas, while noting that Jakarta needs six to eight years to be able to restore clean air conditions.

Assets of SOEs will be leveraged to help combat pollution, he stated.

“We can plant trees for a better (environment). We have also issued the SOEs Minister’s Regulation that mandates (SOEs) to gradually adopt electric vehicles,” he pointed out.