Indonesia Takes Bold Step in Carbon Market: Soon to Embrace International Standards
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Indonesia is making a groundbreaking move in its carbon market. H.E. Hashim Djojohadikusumo, Special Envoy for Energy and Environment appointed by President of Indonesia, H.E. Prabowo Subianto, announced a major shift during his speech at the ESG Sustainability Forum 2025 on January 31, 2025, at Menara Bank Mega, Jakarta. Indonesia has been the long awaited market to unlock vast potential in forestry and nature-based solutions (NBS). This development signals the nation’s readiness to embrace global participation in its carbon trading landscape.
A Strategic Shift Towards an Open Market
Recognizing the urgent need to further open the market, H.E. Hashim stated in his speech¹:
“Menteri Kehutanan dan Menteri Lingkungan Hidup merekomendasi kepada pemerintah, ke presiden agar perdagangan karbon dalam negeri dibuka untuk pelaku-pelaku international dan verificators seperti Verra, Gold Standards, atau sebagainya itu boleh dipake sebagai acuan di dalam negeri. "
As the younger brother to H.E. President Prabowo Subianto, he also expressed strong confidence that the President postively will approve this transformative step, emphasizing its role in unlocking the full economic and environmental value of Indonesia’s carbon assets.
Boosting Liquidity and Accelerating NBS Growth
This announcement is a game changer—not only for NBS project developers but also for financial institutions looking to invest in carbon markets. By opening up to global players, Indonesia is positioning itself as a key hub for sustainable investments, leveraging its natural resources for both economic growth and environmental preservation.
The implications are immense: a thriving carbon market could create substantial economic benefits for local communities while contributing to global climate goals. This is the synergy the world needs—where sustainability meets economic opportunity.
A New Era for Indonesia’s Carbon Market – The Time is Now
As we enter 2025, this bold move sets the tone for a transformative year ahead. With global carbon markets evolving rapidly, Indonesia’s decision to embrace international standards signals its readiness to lead in climate finance.
Now, all eyes are on the official policy rollout. Stay updated with Fairatmos for the latest insights on Indonesia’s carbon market and beyond!
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¹ Quotes are taken from YouTube, uploaded by CNBC on January 31, 2025, from the timestamp 9:56 – 10:31. HERE.
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