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Indonesia Officially Launched International Carbon Trading


Officials and stakeholders gather to inaugurate IDXCarbon, Indonesia's Carbon Exchange, highlighting the country's commitment to sustainability and carbon trading initiatives. The event marks a significant step in fostering a greener economy through regulated carbon offset mechanisms.

On January 20, 2025, Indonesia officially launched its international carbon trading initiative in collaboration with IDX Carbon, the Ministry of Environment, and the Financial Services Authority (OJK). This milestone strengthens Indonesia’s role in the global carbon market, showcasing its commitment to achieving its Nationally Determined Contributions (NDCs) and operationalizing Article 6 of the Paris Agreement. 

 

The initiative enables the use of authorized carbon units from Technology-Based Solution (TBS) projects, supporting carbon pricing mechanisms such as emissions trading and offsets. These efforts align with Presidential Regulation Number 98 of 2021, ensuring Indonesia’s climate actions remain credible and impactful on a global scale.


Hanif Faisol Nurofiq, Menteri Lingkungan Hidup delivers a speech at the inauguration of Indonesia's International Carbon Trading platform, emphasizing the nation's commitment to sustainable development and global carbon reduction efforts.

Carbon Credit Trading


The trading of carbon credits follows a process similar to an initial public offering (IPO) for carbon units, which is conducted on the SRN-PPI platform. SRN-PPI serves as the primary market for the issuance of these credits. Once issued, these carbon credits can be traded on the secondary market, which is managed by the Indonesia Stock Exchange (IDX) through a dedicated carbon exchange platform, IDXCarbon.


International Carbon Trading with SRN PPI


With the launch of international carbon trading, Indonesia ensures that every carbon certificate is credible and authorized, creating a transparent market aligned with global standards. This is facilitated by the National Registry System of Climate Change (SRN PPI), which tracks carbon transactions with transparency. The system adheres to the principles of integrity, inclusion, and fairness as outlined in Presidential Regulation Number 98 of 2021. Under the Indonesia Greenhouse Gas Emission Reduction Certification Scheme (SPEI), the carbon units traded are validated to prevent issues like double counting, payment, and claiming.


The certified and registered projects under SRN-PPI (Sistem Registri Nasional – Pengendalian Perubahan Iklim) reflect Indonesia’s efforts in carbon trading and emissions reduction. ndonesia is now officially ready to engage in international carbon trading, with 1,780,000 tons of CO2e carbon credits authorized from the energy sector. 


“The foundation for global climate action that turns ambition into action aligns economic growth with environmental responsibility and the sustainability of carbon as a tool.” Indonesia’s Minister of Environment, Hanif Faisol

Iman Rachman, Direktur Utama BEI, delivers a speech at the inauguration of Indonesia's International Carbon Trading platform, emphasizing the nation's commitment to sustainable development and global carbon reduction efforts.

Corresponding Adjustment in Indonesia's Carbon Trading


The use of Corresponding Adjustment (CA) for carbon credits has been officially authorized by the Indonesian government. With CA, carbon credits are assigned to the emissions reduction target of the purchasing country’s Nationally Determined Contribution (NDC), enabling them to contribute to global climate targets. Domestic carbon transactions, however, can proceed without CA authorization. This mechanism prevents double counting of emission reductions and removals transferred under Article 6 of the Paris Agreement.


How to Participate in Indonesia’s International Carbon Trading


There are three options for foreign entities to engage in international carbon trading:


  1. Foreign entities can register directly as IDXCarbon Users and manage their own transactions and retirement of carbon credits.

  2. If a foreign entity owns a subsidiary in Indonesia, the subsidiary can register as an IDXCarbon User and handle transactions and retirement on behalf of the parent company.

  3. Alternatively, foreign entities can purchase and retire carbon credits through an intermediary registered as an IDXCarbon User.


The launch of international carbon trading in Indonesia provides foreign entities with a valuable opportunity to support global climate goals. At CarbonEthics, we facilitate the purchase of authorized credits through the IDXCarbon platform, even for entities without a subsidiary in Indonesia. As a broker, we offer access to verified and authorized carbon units, ensuring a real and measurable environmental impact.


🌱Contact CarbonEthics today to purchase authorized carbon units and help drive meaningful change in the global carbon market. https://www.carbonethics.co/#collaborationform
















 
 
 
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