On January 20, 2025, Indonesia officially launched international carbon trading through the IDXCarbon platform at the Indonesia Stock Exchange (IDX). This historic event was attended by government leaders, private sector representatives, and delegates from friendly nations, marking Indonesia’s readiness to complete in the global carbon market. Since its launch in September 2023, IDXCarbon has shown rapid progress, cumulatively trading one million tons of carbon units and registering 100 participants. This carbon trading initiative is not only part of efforts to accelerate sustainable development but also a concrete step toward achieving the second Nationally Determined Contribution (NDC) target in February 2025.
Indonesia’s commitment to the global carbon market is further strengthened by the implementation of transparent and high-integrity mechanism. The Emission Reduction Certificate (ERC), National Registry System (NRS), and the Measurement, Reporting, and Verification (MRV) mechanism are designed to ensure carbon trading operates seamlessly, avoiding double accounting and double claims. In the inaugural trade, a total of 1,780,000 tons of CO2e from the energy sector were authorized, including projects such as the Mini-hydro Power Plant in Gunung Wugul and the conversion of the Grati Block 2 Gas and Steam Power Plant (PLTGU) from single-cycle to combined-cycle systems. This significant step enhance Indonesia’s position in the global carbon market while delivering positive impacts on the economy and environment, creating great opportunities for a more sustainable future.