Indonesia Calls on World to Build Strong, Transparent, and Impactful Carbon Markets

The Indonesian government has affirmed its commitment to building a credible, transparent, and high-integrity carbon market as a vital instrument for mobilising global climate finance. The commitment was delivered by Indonesia’s Minister of Forestry, Raja Juli Antoni, during his closing remarks at the high-level session ‘From Fragile to Financeable – De-risking Carbon Credit Markets’, held as part of London Climate Action Week 2026 in London, United Kingdom. The session, organised jointly with The Coalition to Grow Carbon Markets, brought together government leaders, financial institutions, businesses, international organisations, and carbon market developers to discuss strategic steps for transforming carbon markets from fragmented and high-risk ventures into mature, trusted, and attractive platforms for long-term investment. In his address, the Forestry Minister stressed that the main challenge in climate financing today is not a lack of ambition or capital, but rather the absence of conducive conditions for investment to flow safely and at scale into various climate solutions. ‘Carbon markets have enormous potential to channel investment into emission reductions, forest protection, ecosystem restoration, and sustainable development. However, to achieve this potential, carbon markets must be built on a foundation of integrity, transparency, regulatory certainty, and trust,’ stated Raja Juli Antoni. He noted that Indonesia has a strategic interest in strengthening global carbon markets, given its status as one of the countries with the largest tropical forest areas 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 institutional instruments. A key milestone 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 is reinforced by Forestry Ministerial Regulation Number 6 of 2026 and Forestry Ministerial Regulation Number 7 of 2026, which govern carbon management, transparency, environmental integrity, and investment certainty in forestry carbon activities. As part of strengthening the national carbon market infrastructure, Indonesia will also launch the Carbon Unit Registry System (SRUK) on 9 July 2026. This system will serve as the primary foundation for Indonesia’s carbon market governance by enhancing transparency, accountability, traceability, and certainty for businesses and investors. The launch of SRUK will be accompanied by the registration of several forestry carbon projects using internationally recognised standards. 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 step represents one of the largest achievements in the history of Indonesia’s forestry carbon market development and demonstrates the country’s readiness to present concrete and measurable climate investment opportunities. ‘This is proof that Indonesia is not only building a policy framework but also delivering concrete and trustworthy market opportunities for investors,’ the Forestry Minister asserted. On the occasion, the Minister also emphasised the importance of international collaboration to build a stronger global carbon market. He noted that global financial centres have a significant role in establishing trusted market institutions, developing risk management instruments, and mobilising the investment needed to support the transition to a low-carbon economy. Ahead of COP31, Indonesia is pushing three main agendas for global carbon market development. First, strengthening market integrity and transparency to continuously increase trust in carbon credits. Second, developing market infrastructure, liquidity mechanisms, and risk-sharing instruments capable of attracting large-scale private and institutional investment. Third, ensuring that carbon finance delivers tangible benefits to local communities, indigenous peoples, and forest guardians who contribute directly to ecosystem protection. Concluding his remarks, the Forestry Minister asserted that the future of carbon markets is determined not only by the volume of carbon credits traded but also by the level of trust built, the investment successfully mobilised, and the climate and development benefits generated.