Jakarta. The government recently commended the Indonesia Commodity & Derivatives Exchange (ICDX) following the launch of its Renewable Energy Certificate (REC) trading market.

ICDX has secured the commodity futures trading regulatory agency Bappebti's approval to operate this market. An REC is a certificate for electricity production from new and renewable energy power plants that meet nationally and/or internationally recognized standards. One REC is equivalent to 1 Megawatt-hour (MWh) of clean energy.

According to Dyah Roro, cross-sectoral collaboration is key to addressing climate change.

"They [ICDX] have also done an extraordinary job as our partner at the Trade Ministry. This is such an important moment as we are also launching the REC, which is highly relevant, given the climate change issues that we are all facing," she said. 

The RECs will speed up the achievement of Indonesia's renewable energy targets. The Southeast Asian country has just launched the electricity business plan, or RUPTL, that lays out the sources of Indonesia's energy in the coming years. Roro also praised Bank Indonesia for appointing ICDX as the operator of the money market and foreign exchange derivatives futures exchange.

ICDX President Director Fajar Wibhiyadi said that the company was ready to support the REC market.

"As a trading exchange, we have prepared the technology and trading infrastructure for the public to utilize. The ICDX infrastructure is also connected to the Evident I-REC and APX TIGRs registry systems in accordance with international standards," Fajar said.

The REC market is also expected to continue to grow in line with the increasing demand for clean energy as well as supportive government policies.

"We are optimistic that REC trading will continue to grow in the future. This is also driven by the government's efforts to increase the use of renewable energy, which we believe can be a positive catalyst for REC trading in Indonesia," he said.

Indonesia aims to have a renewable energy production capacity of 42.6 gigawatts (GW). This is equivalent to 76 percent of the country's total installed power generation capacity. The Energy Ministry data showed that Indonesia held a renewable energy potential of 4,686 GW from solar, wind, hydro, bioenergy, geothermal, and ocean currents.

Through the ICDX Green Initiative program, ICDX strives to open a broader and more transparent market to accelerate the clean energy transition in Indonesia. The launch of the REC market is expected not only to help achieve the energy self-sufficiency target but also to increase Indonesia's competitiveness in the global renewable energy market.

"With collaboration between the government, industry players, and the public, we can jointly provide the best solutions to address climate change, not just address it. This is clear evidence that Indonesia is ready to become a significant player in the renewable energy trade," Dyah Roro said.

With an integrated trading ecosystem, global standards, and abundant resource potential, ICDX is optimistic about supporting the realization of a green energy future for Indonesia and the world.

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