Indonesia will offer carbon credits to foreign buyers in the near future

The carbon exchange in Indonesia announced that Indonesia will begin offering carbon credits to international buyers as early as next week. This is to raise money to support efforts to reach its carbon neutrality goal.

Indonesia, an archipelago that has the third largest rainforest in the world, is one of the top 10 emitters of greenhouse gases.

The exchange announced that the first sale of certificates of carbon credits for international buyers would be made on Monday, January 20.

According to Antara, the state news agency, earlier this week the Ministry of Environment announced that certificates would be issued for emission reductions of 2.48 million metric tonnes of CO2e from various power projects on Java Island.

Indonesia began trading carbon emission credits for domestic players on September 20, 2023. However, the market was mostly illiquid because of a lack in supply and demand.

According to Indonesia's Financial Services Authority, the trading value in December 2024 reached 50.64 billion Rupiah (3.10 million dollars), and the volume of CO2e traded reached 908,018 tonnes.

The new president Prabowo has plans to raise money through the sale of carbon offsets. He said last year that he believed Indonesia would reach net zero emission in 2050 - a decade sooner than originally planned - by retiring coal fired power plants. $1 = 16,360,0000 rupiah (Reporting and editing by Gayatri Suryo and Kim Coghill).

(source: Reuters)