First introduced back in 2023 in order to facilitate the operations of carbon exchange operators (Penyelenggara Bursa Karbon – “PBK”), the Board of Directors of PT Bursa Efek Indonesia (“Directors”) issued Decree No. KEP-00297/BEI/09-2023 on the Regulation of Carbon Exchange Users (“Decree 297/2023”),[1] which came into effect on 20 September 2023.[2] However, to extend the registration fee exemption that Carbon Exchange Users (“Exchange Users”) have been enjoying under the framework of Decree 297/2023 in order to encourage more parties to register as carbon Exchange Users, the Directors recently issued Decree No. KEP-00148/BEI/09-2024, which bears the same title as Decree 297/2023 (“Decree 148/2024”). This new Decree came into effect on 24 September 2024.[3]

Decree 148/2024 simultaneously repeals and replaces Decree 297/2023.[4] However, it is important to note that for the most part, Decree 148/2024 retains the provisions originally set out under the Appendix to Decree 297/2023. Indeed, the only difference is that the new framework has extended the registration fee exemption Exchange Users have been enjoying from a deadline of 25 September 2024 until 25 September 2025.[5]

In light of this change, this edition of ILB offers a detailed summary of the various provisions set under Decree 148/2024 and will therefore serve as a refresher on the various matters that Exchange Users should take note of. The following matters are covered:

1. Registration and Payment Procedures;
2. User Registration Mechanism; and
3. Exchange User Obligations and Applicable Sanctions

Registration and Payment Procedures

In order to become Exchange Users, prospective users must meet the following requirements:[6]

In line with the registration fee payment mechanism, prospective Exchange Users will also be required to pay a registration fee of Rp. 5 million to PBK by 25 September 2025.[7] This fee must be fully paid and cleared through the PBK’s account at the time that a given application for Exchange User status is submitted.[8] Additionally, prospective Exchange Users must pay training fees if they opt for non-routine training, which will be scheduled in accordance with PBK availability.[9] It is important to note that all payments must include value-added tax (VAT) in accordance with applicable laws.[10]

Broadly speaking, prospective Exchange Users who meet all of the requirements, including payment of the mandatory registration fee, may proceed with their registrations by submitting the required supporting documents and opening a sub-securities account.[11] The PBK will then review the submitted documents within five days and, based on certain specific considerations, may either approve or reject them.[12] At the end of this process, PBK will issue a prospective Exchange User with either an approval letter or a rejection letter, along with the reasons for the rejection, if applicable.[13]

User Registration Mechanism

Any Exchange Users who are employees of Exchange User companies and who have secured carbon exchange training certification can apply to register as PBK users.[14] Said registrations can be submitted through the following mechanism:[15]

Exchange User Obligations and Applicable Sanctions

Through Decree 148/2024, Exchange Users whose applications have been fully approved are required to fulfill several obligations, any violations of which may result in the imposition of the following types of sanctions:

Key Takeaways

It is hoped that Decree 148/2024 will be able to support growth in the number of Exchange Users and enhance carbon trading activities through PBK. In line with this goal, prospective Exchange Users may optimize the registration fee exemption up until a new extended deadline of 25 September 2025. However, Exchange Users must also pay attention to the various obligations stipulated under Decree 148/2024 in order to avoid the imposition of any administrative sanctions.

Source: hukumonline.com