TEMPO.CO, Jakarta - The Indonesia Commodity & Derivatives Exchange (ICDX), also known as Bursa Komoditi dan Derivatif Indonesia (BKDI), has been designated as the official exchange for organizing the physical market trading of Renewable Electricity. This follows the approval granted by the Commodity Futures Trading Regulatory Agency (Bappebti) under the Ministry of Trade, with permit number 01/BAPPEBTI/SP-BREC/04/2025.
ICDX President Director Fajar Wibhiyadi stated that his institution has officially become the first futures exchange in Indonesia to trade the Renewable Energy Certificate Physical Contract, or REC. He explained that REC is a certificate representing the production of electricity generated by New and Renewable Energy (EBT) Power Plants, adhering to nationally and/or internationally recognized standards. According to these standards, 1 REC is equivalent to 1 MWh.
"The permit granted by Bappebti to ICDX to facilitate REC trading is a mandate from the Government to accelerate the growth of EBT and support Indonesia's efforts to reduce carbon emissions," Fajar said in a written statement on Wednesday, May 7, 2025.
Fajar emphasized that ICDX's efforts represent a breakthrough and ongoing innovation for the development of the commodity futures trading industry in Indonesia. Furthermore, he noted that REC trading on ICDX is a significant step towards accelerating the growth of New and Renewable Energy and supporting the government's initiatives to reduce carbon emissions in Indonesia.
Fajar added that ICDX is technologically ready with the necessary trading infrastructure for REC Physical Contract transactions. To support REC trading, ICDX has established connections with the registration systems of Evident I-REC and APX TIGRs, in accordance with international standards.
"This ensures that market participants involved in REC trading through ICDX will operate in real-time. Within this REC trading system, the Indonesia Clearing House will act as the clearing institution, responsible for organizing and providing the system and facilities for clearing and guaranteeing the settlement of transactions," Fajar explained.
Tirta Karma Sanjaya, the Head of Bappebti, stated that renewable electricity holds significant potential for development in Indonesia. The establishment of a physical market for trading Renewable Electricity can be utilized by Indonesian companies to report indirect emissions from their electricity consumption and to achieve their Net-Zero Emission targets.
"REC is a reliable tool for tracking and reporting the use of renewable energy and is recognized by various platforms and standards for climate change mitigation and greenhouse gas emission reporting, such as the GHG Protocol, CDP, RE100, SBTi, and others," Tirta noted.
Tirta added that the creation of an exchange for the Physical Market Trading of Renewable Electricity also demonstrates Bappebti's commitment to increasing the adoption of clean energy in Indonesia. Additionally, this initiative aims to enhance the value and revenue for electricity producers, as well as incentivize the development of more New Renewable Energy programs.
"This also provides a way for the community to support the development of sustainable clean energy," Tirta said.
According to Bappebti Regulation No. 11 of 2024 concerning Procedures for Implementing the Physical Market Trading of Renewable Electricity on the Futures Exchange, the Physical Market of Renewable Electricity is an organized physical market trading platform for Renewable Electricity. This platform, facilitated and organized by the Renewable Electricity Exchange, enables the buying and selling of Renewable Energy Certificates or REC Physical Contracts.
Regarding the Physical Market Trading of Renewable Electricity as a commodity on the Futures Exchange, several countries have already implemented similar programs. Examples include the India Energy Exchange in India, the European Energy Exchange in Europe, the Intercontinental Exchange in the United States, Xpansive in Australia, the Air Carbon Exchange in Singapore, and Bursa Malaysia in Malaysia.
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