Environment Ministry: All instruments ready, carbon trading to bring prosperity to the people

The Ministry of Environment has confirmed that all regulatory instruments and infrastructure to commence carbon trading in Indonesia are complete and ready for operation, with the primary aim of bringing prosperity to the people. Environment Minister Jumhur Hidayat stated in Jakarta on Thursday that the completion of these crucial instruments is marked by the issuance of supporting regulations from the Financial Services Authority (OJK), a Minister of Environment Regulation, and a Minister of Forestry Regulation. Indonesia’s readiness for the carbon trading market was also demonstrated by the inauguration of the Carbon Unit Registry System (SRUK) by the President’s Special Envoy for Energy and Environment, Hashim Djojohadikusumo, together with cross-ministerial and institutional representatives today. “The governance of this carbon market ecosystem is designed to be fair, transparent, and traceable. We just need to go to market and ensure our carbon pricing has high integrity, does not overlap, and is well maintained at the grassroots level,” Jumhur said. The Ministry is committed to using this carbon economic value instrument as a driver for equitable socio-economic development across all regions of the country. Through the presence of SRUK, the government aims to ensure that local communities, who have been at the forefront of protecting forests and the environment, receive fair economic compensation. “Let us make SRUK an instrument that allows all of us to contribute not only to emission reduction but also to ensuring that the communities protecting the forests can prosper,” Jumhur added. Previously, the procedures for carbon trading through greenhouse gas emission offsets in the forestry sector were also finalised through Minister of Forestry Regulation Number 6 of 2026. With this, he expressed optimism that Indonesia could become a global epicentre for carbon trading, supported by increasingly robust regulations that enable trading to begin, as well as the simplification of licensing in conservation areas which will open up accountable and high-integrity carbon trading opportunities. The implementation of the national carbon economic value instrument is projected to drive green investment of up to USD 5.8 billion. It is also expected to reduce greenhouse gas emissions by approximately 570 million tonnes of CO₂ equivalent.