Indonesia Affirms Commitment to High-Integrity Carbon Market Development

Jakarta (ANTARA) - The Indonesian government has reaffirmed its commitment to establishing a credible, transparent, and high-integrity carbon market as a vital instrument for mobilising global climate finance.

Minister of Forestry Raja Juli Antoni, in a statement received in Jakarta on Thursday, noted that the primary challenge in current climate finance is the lack of conducive conditions to allow investment to flow safely and at scale into various climate solutions.

“The carbon market holds great potential to channel investment towards emission reductions, forest protection, ecosystem restoration, and sustainable development,” said Raja Juli An Antoni.

“However, to achieve this potential, the carbon market must be built on a foundation of integrity, transparency, regulatory certainty, and trust,” he added.

He assessed that Indonesia holds a strategic interest in strengthening the global carbon market, given that Indonesia possesses one of the largest tropical forest regions in the world, playing a crucial role in climate change mitigation.

To this end, the Indonesian government continues to strengthen national carbon governance through various policy reforms and the reinforcement of institutional instruments.

A significant milestone already established is the implementation of Presidential Regulation Number 110 of 2025, which serves as the basis for developing a more integrated and credible national carbon market.

In the forestry sector, this reinforcement is further bolstered by Forestry Ministerial Regulation Number 6 of 2026 and Forestry Ministerial Regulation Number 7 of 2026, which regulate carbon governance, transparency, environmental integrity, and investment certainty in forestry carbon activities.

As part of the strengthening of national carbon market infrastructure, Indonesia will also launch the Carbon Unit Registry System (SRUK) on 9 July 2026.

Furthermore, on 6 July 2026, the Ministry of Forestry will issue Ministerial approvals and facilitate the issuance of forestry carbon credits with a volume exceeding 30 million tonnes of CO2e.

“This is evidence that Indonesia is not only building a policy framework but is also presenting concrete market opportunities that can be trusted by investors,” he said.

The Minister of Forestry also emphasised the importance of international collaboration to build an increasingly robust global carbon market.

According to him, the world’s financial centres play a vital role in building trusted market institutions, developing risk management instruments, and mobilising the investment required to support the transition towards a low-carbon economy.

Meanwhile, ahead of the COP31 summit, Indonesia is promoting three main agendas in the development of the global carbon market.

First, strengthening market integrity and transparency so that confidence in carbon credits continues to increase.

Second, developing market infrastructure, liquidity mechanisms, and risk-sharing instruments capable of attracting large-scale private and institutional investment.

Third, ensuring that carbon financing provides real benefits to local communities, indigenous peoples, and the forest guardians who contribute directly to ecosystem protection.