PALMOILMAGAZINE, TANGERANG – The Ministry of Trade has engaged Indonesian planters and exporters to deepen their understanding of carbon policies in key importing countries, specifically the European Union’s Carbon Border Adjustment Mechanism (CBAM). By comprehending these regulations, the ministry aims to help planters grasp the potential impacts and necessary actions to sustain their export activities to the EU.
During a seminar titled “EU CBAM Policy: What Indonesian Businesses Need to Know?” held on Thursday, Johni Martha, Director of Bilateral Negotiation at the Ministry of Trade, noted that the CBAM has been implemented in phases since 2023. He mentioned that the policy currently covers several sectors, including iron and steel, aluminum, cement, and fertilizers, with the potential to extend to additional products in the future.
“We hope that this forum will enhance our understanding of how to collectively face CBAM with the right strategies,” Johni stated, as reported by Palmoilmagazine.com on Wednesday, October 16, 2024.
Meanwhile, Brussels Trade Attaché Antonius Annurrullah Budiman highlighted that the EU CBAM will affect various Indonesian commodities, such as aluminum, iron and steel, and fertilizers. He emphasized that stakeholders must meet the terms and conditions set by CBAM, including the carbon metrics required by many EU importers.
Ferry Samuel Jacob, an intermediate expert in Trade Analysis at the Ministry of Trade, explained that the EU CBAM was designed to prevent carbon leakage and support climate change mitigation. According to the Ministry’s analysis, the policy could negatively impact product exports from Indonesia in the short and medium term, necessitating adaptive measures from both the government and stakeholders.
Deputy Supervisor Director of Carbon Exchange, Otoritas Jasa Keuangan (OJK), Wahyudi Ali Adam said that Indonesia has its mechanism and regulation about carbon trade through carbon exchange. It was regulated in the Laws Number 4 / 2023 about Financial Sector Reinforcement and development and was reinforced by the Regulation of OJK Number 14 / 2023. Carbon trade in Indonesia should be developed and help the stakeholders to face every carbon track policy from the partners countries including about CBAM.
For having more understanding about CBAM, the Indonesia’s stakeholdes should be more prepared to face the regulation and maintain the export competition in the world, particularly in EU. (P2)
