Finance Ministry Maps Carbon Trading Potential in Bali at Rp1.7 Trillion
The Ministry of Finance, through the Regional Office of the Directorate General of Treasury (DJPb) for Bali Province, has mapped the carbon trading potential on the Island of the Gods, with the highest estimate reaching Rp1.7 trillion.
“By restoring existing mangroves, we not only help the environment but can also generate income from carbon trading,” said Head of the DJPb Regional Office for Bali, Supendi, in Denpasar on Thursday.
He explained that the carbon trading potential is located in one specific area, namely the Ngurah Rai Forest Park, which spans Denpasar City and Badung Regency. The office conducted a natural resource assessment in 2024 within the Ngurah Rai Forest Park conservation area, aiming to determine one of the ecosystem service values, specifically carbon sequestration. The estimated carbon absorption potential in the forest park is approximately 2,464,290.29 tonnes.
There are three benchmarks used to calculate the carbon price: the social cost of carbon, the World Bank price, and the Indonesia Carbon Exchange (IDX Carbon) price, each multiplied by the total carbon sequestration. Supendi detailed that the World Bank benchmark offers the highest carbon price, reaching 44 US dollars per metric tonne of carbon dioxide equivalent (CO2e). The social cost of carbon is the lowest at 10.9 US dollars, while the IDX Carbon price is set at Rp58,800 per metric tonne of CO2e.
Thus, the highest estimated carbon trading value, using the World Bank price and assuming a rupiah exchange rate of Rp16,500 per US dollar as per the 2026 state budget, is projected to reach Rp1.7 trillion. Using the social cost of carbon, the value is estimated at around Rp423.26 billion, and based on the IDX Carbon price, it is estimated at Rp144.9 billion.
According to 2021 data from the Bali Provincial Statistics Agency (BPS), the mangrove ecosystem in the Ngurah Rai Forest Park is the largest on the island, covering 1,373.5 hectares out of Bali’s total mangrove area of 1,894 hectares.
The Ministry of Finance notes that carbon trading is a market-based mechanism where emission permits or carbon units can be traded to reduce total greenhouse gas (GHG) emissions. Carbon trading is organised by the Indonesia Stock Exchange (BEI), which has developed the IDX Carbon platform to facilitate domestic carbon trading under the supervision of the Financial Services Authority (OJK).
Since its launch on 26 September 2023 until 30 April 2026, IDX Carbon has recorded a total of 155 registered service users and 10 Greenhouse Gas Emission Reduction Certificate (SPE-GRK) projects. The aggregate transaction volume reached 1.98 million tonnes of CO2 equivalent, with a cumulative transaction value of Rp93.75 billion.