Indonesia targets full-scale carbon market launch by mid-year

Indonesia is aiming to bring its national carbon market into full operation by late June 2026, with large-scale transactions expected to start the following month, according to Hashim Djojohadikusumo, special envoy for climate and energy to President Prabowo Subianto.

Speaking at the ESG Sustainability Forum 2026 in Jakarta on Tuesday, Hashim said the timeline aligns with Presidential Regulation No. 110 of 2025 on Carbon Economic Value Instruments and National Greenhouse Gas Emission Control, which establishes the legal foundation for carbon trading in Indonesia.

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He said the regulation sets out mechanisms for carbon credit trading, a carbon unit registration system, safeguards against double counting, and links between domestic and international carbon markets. The government is also integrating multiple carbon registration systems into a single national framework to improve transparency and accountability.

Hashim noted that Indonesia has strong potential to benefit economically from carbon trading, driven by international demand for nature-based carbon credits. He pointed to the country’s extensive forests, mangroves, seagrass meadows, and marine ecosystems, as well as opportunities to develop carbon capture and storage technologies.

The government expects the carbon market to become a new source of financing for environmental protection, forest conservation, the energy transition, and broader economic growth, while supporting global climate and sustainability goals.

Editing by Alexander Ginting