Insurance Sector to Tap Business Potential from Carbon Exchange

The Indonesian Carbon Exchange is poised to be one of the largest and most prominent in the world, given the high volume and diversity of carbon units to be traded.

Pernita Hestin Untari & Annisa Kurniasari Saumi

28 Sep 2023 - 15.18
Insurance Sector to Tap Business Potential from Carbon Exchange

President Joko Widodo (center) inaugurated the launch of the Indonesian Carbon Exchange on Tuesday, September 26, 2023, at the Indonesia Stock Exchange in Jakarta, alongside Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan (second right), Chairman of the Financial Services Authority (OJK) Board Mahendra Siregar (second left), Minister of Home Affairs Tito Karnavian (right), and Minister of Environment and Forestry Siti Nurbaya Bakar. Bisnis-Doc. Presidential Secretariat

Bisnis, JAKARTA — The newly-launched carbon exchange may present opportunities for various financial service industries, including the insurance sector wherein insurance can play a role in planning and mitigating risks.

The Indonesian Carbon Exchange or IDXCarbon was officially launched by President Joko Widodo on September 26, 2023. Bern Dwiyanto, Executive Director of AAUI, agrees that the carbon exchange can be an opportunity for the general insurance industry. “We've heard a lot about this, and it is indeed an opportunity for the financial industry, including the general insurance sector,” Bern told Bisnis on Wednesday (27/9/2023).

The insurance industry can play a crucial role in protecting participants in the carbon exchange from climate-related risks and other factors that can affect their carbon credits. However, Bern opined that there are challenges in seizing these opportunities.

Moreover, discussions about carbon trade insurance are still very limited in Indonesia. “Infrastructure and regulations supporting the implementation of carbon trade insurance need to be well-prepared,” he said.

Cek Berita dan Artikel yang lain di Google News dan WA Channel
Editor: Ibeth Nurbaiti
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