Government Tries New Methodology for International Carbon Trading

Indonesia has launched international carbon trading on 20 January 2025, which is conducted through the Indonesia Carbon Exchange (“IDXCarbon”).

The implementation of international carbon trading is in accordance with Regulation of the President No. 98 of 2021 on the Implementation of Carbon Economic Value (Nilai Ekonomi Karbon - “NEK”) to achieve Nationally Determined Contribution (“NDC”) Target and Control Over Greenhouse Gas (“GHG”) Emission in relation to National Development (“Perpres 98/2021”).

Sigit Reliantoro, Deputy for Environmental Management and Sustainable Natural Resources at the Ministry of Environment (Kementerian Lingkungan Hidup - KLH), stated that the government is working to incorporate new efforts into the context of trade.

"We want to improve the carbon trading, (such as) methodology, including calculations from peat and mangroves that we have prepared. So that if you have mangrove concessions and maintain hydrology, you can sell them in the international market" Sigit said to hukumonline.

The government will improve the regulations by considering the wishes of buyers while maintaining integrity.