ANALYSIS OF THE APPLICATION OF CARBON ACCOUNTING IN ENERGY SECTOR ISSUERS ON THE IDX AFTER THE 2023 CARBON EXCHANGE RULES

Abstract

This study analyzes the level and challenges of implementing Carbon Accounting (CA) by energy sector issuers on the Indonesia Stock Exchange (IDX) following the launch of the Indonesian Carbon Exchange (IDX Carbon) in 2023, and examines the implications of the planned OJK regulation in 2025. The energy sector, as the main contributor to GHG emissions in Indonesia, is required to adopt accurate CA (Scope 1, 2, and 3) in accordance with Minister of Environment and Forestry Regulation No. P.21/2022. Simulated results show that CA implementation is bifurcated and uneven. Although certain large issuers (e.g., Pertamina) have implemented CA comprehensively (GRI/GHG Protocol, including initial Scope 3, and third-party verification), most issuers (around 60% based on Bappebti survey) still face methodological inconsistencies, low Scope 3 coverage (only 40%), and internal verification, potentially leading to emission underreporting of up to 20%. The common standards used are the GHG Protocol and GRI 305, but implementation quality diverges. The draft POJK 2025, which mandates the ISO 14064-1:2018 standard and annual external audit, is considered crucial for standardizing reporting and increasing issuer compliance, while also mitigating the risk of greenwashing and enhancing the legitimacy of the carbon market.