Indonesia to Launch Its First International Carbon Market
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The Indonesia Carbon Exchange or known as IDX Carbon, is the first official carbon exchange in Indonesia, operating under a permit granted by the Financial Services Authority (Otoritas Jasa Keuangan or OJK). As part of IDX Carbon’s initiative to develop a carbon market, it will launch its international carbon trading in January 2025 by aiming to authorize the first international sale of Indonesian Carbon Credits. This will enable foreign entities to acquire carbon units that directly support Indonesia’s Nationally Determined Contributions (“NDC”).
The inaugural trade is scheduled for 20 January 2025 with the carbon units offered are authorized credits available for international transactions. International participants can join this market by registering directly with IDX Carbon or partnering with existing Indonesian IDX Carbon users. The units that are sold and retired are able to be claimed and accounted for the NDC of the buyer’s home country. These authorized international carbon units can be acquired by both domestic and foreign companies for internal use, resale to international clients, or retirement on behalf of other overseas entities. This initiative strengthens Indonesia’s contribution to global climate action while attracting foreign investment into sustainable development projects.
Key projects featured in this initiative include:
- Gas and Steam Power Plant (Pembangkit Listrik Tenaga Gas dan Uap – “PLTGU”) Priok Block 4, offering up to 763,653 tCO2e credits.
- PLTGU Grati Block 2 (Add On), offering up to 407,390 tCO2e credits.
This initiative underscores Indonesia’s dedication to sustainable development and its active contribution to global emission reduction objectives.