Articles

Barriers for Business to Engage in Carbon Trading Through the Indonesian Carbon Exchange: An Analytical Hierarchy Process Approach

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This study investigates the barriers faced by businesses in participating in carbon trading through the Indonesia Carbon Exchange (IDXCarbon). Although Indonesia has committed to reduce greenhouse gas emissions by 31.89% with national efforts and 43.20% with international assistance, participation in IDXCarbon is still limited. Using the Analytical Hierarchy Process (AHP) method, this study identifies and ranks barriers based on expert evaluation in four main criteria:  Impact on Risk Management and Uncertainty; Impact on Business Operation and Strategy; Impact on Financial and Profitability, and Impact on Regulatory Compliance and Stakeholder Engagement. The main barriers identified were Concern Over Loss of Sustained Revenue; Lack of Company Understanding and Capability; Additional Explicit Costs; Bureaucratic Complexity; Low Level of Transparency; and Limited Trading Volume. The results of this study are expected to guide policymakers and business leaders in improving their effectiveness and participation in carbon trading, thereby contributing to Indonesia’s ambitious emissions reduction targets.

Utilization of Blockchain and the Roles of Banks in Indonesia in Tackling Environmental Challenges: A Qualitative Research

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This dissertation investigates the readiness of the blockchain technology to be utilized in the upcoming Indonesia’s Emissions Trading Scheme, also the roles of banks and digital banks in the ETS using PESTEL analysis. The study found that Indonesia still lacks the infrastructure to implement the blockchain technology, while banks in Indonesia has huge roles in the scheme including preparing the infrastructure. With a large and growing population, Indonesia has the potential to develop the human resources necessary for blockchain development. However, finding skilled programmers remains difficult. The relationship between blockchain and the environment is also examined, with experts debating its potential benefits and drawbacks. In addition, the thesis analyzes Indonesia’s efforts to mitigate and adapt to climate change, including its participation in international agreements and infrastructure improvements. Finally, the thesis considers the role of financial institutions in promoting emissions trading and the challenges they face in doing so. Overall, the thesis highlights the complex and interconnected factors that influence the adoption and development of blockchain technology in Indonesia.