Indonesia aims to bring its national carbon market into full operation by the end of June 2026, a move the government says will unlock new financing for climate action and economic growth, the national news agency Antara and other local news outlets reported last week.
Large-scale transactions are expected to begin as early as July, according to Hashim Djojohadikusumo, President Prabowo Subianto’s special envoy for climate and energy, who outlined the timeline at the ESG Sustainability Forum 2026 in Jakarta.
The rollout is anchored in Presidential Regulation No. 110 of 2025, described by Hashim as a “game changer,” which establishes the legal framework for carbon economic value instruments and national greenhouse gas (GHG) emission control.
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The rules set out mechanisms for emissions trading and carbon credits, require registration of carbon units in a national system, and include safeguards to prevent double counting.
They also provide for links between domestic and international markets, a step officials say is essential to attract global investors.
Authorities are now working to merge multiple existing registries into a single national platform so that all transactions are recorded in an integrated and accountable manner.
Officials say the unified system is a prerequisite for meeting international standards and building market confidence.
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Indonesia sees strong economic potential in carbon trading, supported by rising global demand for nature-based credits.
The country’s extensive forests, mangroves, seagrass meadows and marine ecosystems are expected to be key assets in supplying offsets.
The government expects the market to generate funding for forest conservation, environmental protection and the energy transition, while supporting broader economic development and the country’s climate commitments.
Read more: Indonesia Is Back In The Global Carbon Market, But With Stronger Safeguards