Jakarta. The trade of renewable energy certificates, also known as RECs, on the futures exchange is crucial in driving Indonesia's energy transition according to Indonesia Commodity & Derivatives Exchange (ICDX).

Fajar Wibhiyadi, the president director at ICDX, recently joined a seminar on the REC trading at the 2025 Trade Expo Indonesia. 

"This mechanism allows companies to purchase certificates that represent the use of clean energy. This is a major step because RECs enable official recognition of clean energy use, which was previously difficult to track," Fajar told the conference.

This market also provides an opportunity for corporations to demonstrate their commitment to sustainability. For green energy developers, REC sales will provide additional revenue and accelerate the payback period. This helps establish the spirit of mutual cooperation between businesses, the government, and the community in clean energy ecosystem.

"RECs are not just financial transactions, but a collective movement towards a green economy," Fajar said.

Fajar also highlighted that transparency was key in REC transactions happening in ICDX, hence the exchange's partnership with the Indonesia Clearing House (ICH).

"ICH makes sure that the transactions comply with existing regulations. Thanks to the exchange-based trading mechanism, REC price information is clear and accessible to all parties, both REC buyers and sellers," Fajar said.

Indonesia also has issued a 2025 government regulation on the national energy policy. According to this document, Indonesia requires non-renewable energy-based industries have RECs as proof of compliance with clean energy standards. Industries that do not meet clean energy standards will be required to purchase RECs.

This makes RECs a strategic instrument for the national energy transition. The REC itself is a certificate for the electricity produced by renewable power plants that meet nationally and/or internationally recognized standards. In its calculations, 1 REC is equivalent to 1 megawatt-hour (MWh).

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