Indonesia Forest Carbon Hub Launched to Position Nation as Global Carbon Trading Centre

The Ministry of Forestry (Kemenhut) has inaugurated the Indonesia Forest Carbon Hub as part of efforts to position the country as a global centre for carbon trading. Minister of Forestry Raja Juli Antoni stated that the Indonesia Forest Carbon Hub is expected to become a crucial part of building a credible carbon trading ecosystem, noting that an integrated carbon trading scheme can only be realised through collaboration with various stakeholders. He explained that a memorandum of cooperation with the International Emissions Trading Association (IETA) was signed on 10 October 2025. To maintain forestry governance and ensure Indonesia’s carbon credits have high integrity, the government is also working with the Integrity Council for the Voluntary Carbon Market (ICVCM). “The institution will help ensure that methodologies for measurement, calculation, and prevention of carbon leaks comply with international standards,” said Raja Juli. In an effort to realise more integrated carbon trading, Indonesia also joined the Coalition to Grow Carbon Markets in London on 20 January 2026, an international coalition that brings together countries from both the supply and demand sides to build a better global carbon trading ecosystem. “Additionally, the government signed a cooperation agreement with Emergent, which supports the development of a jurisdictional carbon market scheme, so that carbon trading does not only occur through the voluntary carbon market but also involves regional governments,” he explained. The jurisdictional scheme is expected to allow the economic benefits of carbon trading to be felt directly by provincial, district, and city governments, thereby expanding the impact of carbon-based development for the benefit of the community. “Together with the Financial Services Authority (OJK), the Indonesia Stock Exchange, and various relevant authorities, the government is committed to continuously strengthening the national carbon trading ecosystem so that it runs effectively, credibly, and sustainably. We hope this collaboration continues to realise more sustainable forests and a more prosperous society,” said Minister Raja Juli.