Indonesia ready to implement carbon trading ecosystem

Jakarta (ANTARA) - Indonesia's carbon trading ecosystem is fully prepared for implementation to support sustainable economic growth, Forestry Minister Raja Juli Antoni stated.

"On the orders of President Prabowo Subianto, we are starting to improve our carbon trading ecosystem and can even implement it. God willing, we will be able to execute it," Antoni stated here on Thursday.

The ministry will issue ministerial approvals and facilitate the release of forestry carbon credits to three Forest Utilization Business Permit (PBPH) holders and one social forestry entity.

The initial rollout will cover a volume of approximately 31 million tons of CO equivalent (CO2 e). The total transaction value is estimated to reach Rp5 trillion (approximately US$277.52 million), which is projected to generate around Rp500 billion (US$27.77 million) in non-tax state revenue (PNBP).

The formal handover of the credits will take place on July 6, 2026—three days prior to the official launch of the Carbon Unit Registry System (SRUK) on July 9, 2026, which will serve as the primary infrastructure for the national carbon market.

"This is part of the President's mandate as a new engine of growth to achieve 8 percent economic growth, particularly utilizing green growth, so that there is a balance between development, the economy and ecology," Antoni explained.

The Indonesian government has repeatedly affirmed its commitment to establishing a credible, transparent and highly integrated carbon market as a key mechanism to mobilize global climate finance.

According to Antoni, the main challenge facing global climate finance today is the lack of a conducive investment climate that allows capital to flow securely and at scale into climate solutions.

He emphasized that carbon markets hold significant potential to channel global investment into emission reductions, forest protection, ecosystem restoration and sustainable regional development.

By establishing a market built on structural integrity, transparency and regulatory certainty, Indonesia aims to unlock massive alternative investments for forest protection, ecosystem restoration and emission reductions.

Given that Indonesia is home to one of the largest tropical rainforest expanses on earth, Antoni emphasized that building a highly integrated, globally trusted carbon ledger is a vital geopolitical and macroeconomic priority for Jakarta.

To achieve this goal, the Indonesian government continues to fortify national carbon governance through ongoing policy reforms and the strengthening of institutional instruments.

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Translator: Suharsana Aji Sasra J. C., Yashinta Difa

Editor: Arie Novarina

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