Indonesia reaffirms commitment to high-integrity carbon market

Jakarta (ANTARA) - The Indonesian government remains committed to establishing a credible, transparent, and integrated carbon market as an important instrument for attracting global climate finance.

In a statement on Thursday, Forestry Minister Raja Juli Antoni emphasized that the main obstacle in facing climate challenges is the absence of conducive conditions for investment to be directed safely and on a large scale toward climate solutions.

"The carbon market has enormous potential to channel investment for emissions reduction, forest protection, ecosystem restoration, and sustainable development," he noted.

He added that realizing this potential would require the carbon market to be built on a foundation of integrity, transparency, regulatory certainty, and trust.

He said Indonesia stands to play an important role in strengthening the global carbon market, given that the country is home to one of the world's largest tropical forest areas, which play a crucial role in climate change mitigation.

To that end, the government continues to strengthen national carbon governance through various policy reforms and institutional strengthening, including the implementation of Presidential Regulation Number 110 of 2025, as the foundation for a more integrated and credible national carbon market.

In the forestry sector, these efforts are supported by Ministerial Regulation Number 6 of 2026 and Ministerial Regulation Number 7 of 2026, which govern carbon management, transparency, environmental integrity, and investment certainty in forestry-related carbon activities.

As part of strengthening the national carbon market infrastructure, Antoni said Indonesia will also launch the Carbon Unit Registry System (SRUK) on July 9, 2026.

Furthermore, on July 6, 2026, his office will issue ministerial approval and facilitate the issuance of forestry carbon credits with a volume of more than 30 million tons of CO2e.

The minister then highlighted the importance of international collaboration in strengthening the global carbon market.

According to him, global financial centers play a key role in building credible market institutions, developing risk management tools, and mobilizing investment to support the transition to a low-carbon economy.

Meanwhile, ahead of COP31, Indonesia is promoting three main agendas for developing the global carbon market.

First, strengthening market integrity and transparency to further increase trust in carbon credits.

Second, developing market infrastructure, liquidity mechanisms, and risk-sharing instruments capable of attracting large-scale private and institutional investment.

Third, ensuring tangible benefits from carbon financing to local communities and indigenous peoples, as well as forest rangers who contribute directly to ecosystem protection.

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Translator: Arnidhya Nur Z, Resinta Sulistiyandari

Editor: Azis Kurmala

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