Jakarta (VNA) - Indonesia officially launched its forestry carbon trading ecosystem on July 6, with an inaugural issuance of approximately 31 million tonnes of carbon dioxide equivalent (CO₂e), marking a major step in developing the country's carbon market as a new engine of economic growth.
The total transaction value is estimated to reach 5 trillion IDR (approximately 277.52 million USD), which is projected to generate around 500 billion IDR in non-tax state revenue (PNBP).
The formal handover of the credits took place on July 6, 2026 - three days prior to the official launch of the Carbon Unit Registry System (SRUK) on July 9, which will serve as the primary infrastructure for the national carbon market.
Forestry Minister Raja Juli Antoni said, the ministry will issue ministerial approvals and facilitate the release of forestry carbon credits to three Forest Utilisation Business Permit (PBPH) holders and one social forestry entity.
This is part of the Indonesian government's mandate as a new engine of growth to achieve 8% economic growth, particularly utilising green growth, so that there is a balance between development, the economy and ecology, Antoni explained.
The government has repeatedly affirmed its commitment to establishing a credible, transparent and highly integrated carbon market as a key mechanism to mobilise global climate finance.
According to Antoni, the main challenge facing global climate finance today is the lack of a conducive investment climate that allows capital to flow securely and at scale into climate solutions.
He emphasised that carbon markets hold significant potential to channel global investment into emission reductions, forest protection, ecosystem restoration and sustainable regional development./.
