Indonesia opens carbon trading to global market, faces challenges in “boosting interest”

Published on 21/02/2025 GMT+7 Reading time < 1 minute

Deputy Minister of Environment, Diaz Hendropriyono, says that Indonesia's carbon trading or exchange has begun to open to the international market but apparently fails to lure the interest of market players.

"But it must be admitted that the movement (of carbon trading) is not that interesting," Diaz said on Thursday, February 20, 2025.

He estimates that market players are likely to be more interested in nature-based solution (NBS) carbon credits, because most of the carbon credits traded in Indonesia come from new and renewable energy (EBT) generation.

The Ministry of Environment (LH) is scheduled to expand the potential for carbon credits originating from nature by including the potential for carbon storage from peatlands.

Diaz said further that currently the environment ministry is perfecting the national registration system (SRN) to optimize carbon trading in Indonesia because until today, carbon trading certification in Indonesia has not been recognized by the entire international world.

In addition to expanding the potential for carbon credits, the government also wants to encourage demand by opening the door to mutual recognition arrangements (MRAs) with various parties.

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Diaz Hendropriyono
Ministry of Environment (LH)

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