ASIATODAY.ID, JAKARTA — Indonesia has launched the Indonesia Forestry Carbon Hub, a national carbon trading platform designed to connect forest-based climate projects with international investors, in a move expected to unlock around IDR5 trillion (about US$300 million) in carbon market transactions from its first batch of projects.
The initiative marks a significant milestone in Indonesia’s effort to monetize its vast tropical forest resources while strengthening the integrity of its carbon market through digital technology, regulatory reforms, and internationally recognized standards.
Forestry Minister Raja Juli Antoni said the first phase covers verified projects across approximately 225,000 hectares of forests and peatlands, with the potential to reduce around 30 million tonnes of carbon dioxide equivalent (CO₂e) emissions.
The projects are expected to generate approximately IDR500 billion in non-tax state revenue while creating new financing opportunities for forest conservation, peatland restoration, and community-based climate initiatives.
Approved projects include those developed by PT Global Alam Lestari, PT Rimba Makmur Utama, PT Mohairson Pawan Khatulistiwa, and the community-led Bujang Raba landscape project in Jambi managed by conservation organization KKI Warsi.
Building a Trusted Carbon Market
A key feature of the new platform is the integration of Indonesia’s carbon infrastructure with international registries.
Beginning July 9, the government will launch the Carbon Unit Registration System (SRUK), digitally linking it with the Verra Registry and the Indonesia Stock Exchange (IDX) through application programming interfaces (APIs) supported by blockchain technology.
The system is intended to provide end-to-end traceability for every carbon credit issued, enhancing transparency, preventing double counting, and improving market confidence—factors widely regarded as essential for scaling voluntary carbon markets.
Reforms to Attract Green Investment
The launch forms part of broader regulatory reforms under President Prabowo Subianto’s administration aimed at accelerating green investment and reducing bureaucratic barriers.
Coordinating Minister for Food Affairs Zulkifli Hasan said the government has aligned nearly 35 regulations, including government and presidential regulations, to streamline licensing, improve policy coordination, and provide greater certainty for investors.
Indonesia’s Financial Services Authority (OJK) has also expanded the country’s sustainable finance framework through updated carbon exchange regulations, the Indonesian Sustainable Finance Taxonomy, and financing mechanisms backed by forestry carbon credits.
OJK Chair Friderica Widyasari Dew said the financial sector is expected to play a central role in mobilizing climate capital while ensuring that local communities receive equitable economic benefits from conservation activities.
Positioning Indonesia in the Global Carbon Economy
Presidential Special Envoy for Climate and Energy Hashim Djojohadikusumo said Indonesia plans to restore 12.7 million hectares of degraded land, creating one of the world’s largest pipelines for nature-based carbon projects.
He invited international investors to participate in landscape restoration initiatives that will generate certified carbon credits under Indonesia’s strengthened governance framework.
Home to the world’s third-largest tropical rainforest, Indonesia is increasingly positioning itself as a leading supplier of high-integrity nature-based carbon credits at a time when global demand for credible climate solutions continues to grow.
The success of the Indonesia Forestry Carbon Hub will ultimately depend on transparent governance, robust environmental safeguards, and sustained international demand for verified carbon credits. If these conditions are met, the platform could establish Indonesia as one of Asia’s most influential carbon market hubs while supporting the country’s FOLU Net Sink 2030 commitment and broader transition toward a low-carbon economy. (Midwan)
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