Indonesia Opens Carbon Exchange to Foreign Participants
Indonesia has launched its domestic carbon exchange to foreign participants, aiming to revive its status as a major hub for offsets and attract investment for local climate initiatives.
IDXCarbon Exchange
IDXCarbon, operated by the Indonesian stock exchange, now offers domestic carbon credits from five energy generation projects owned by the state-owned utility PT Perusahaan Listrik Negara.
Initial Trading
The exchange initially sold 41,822 tons of CO2E at a price of 96,000 rupiah per ton for energy efficiency projects (gas plants) and 114,000 rupiah per ton for renewables (a mini hydro plant).
Climate Ambitions
President Prabowo Subianto has pledged to accelerate Indonesia's net-zero target to 2050. The country aims to generate substantial revenue from the carbon sector and attract investments in renewable energy, power grid infrastructure, and electric vehicles.
Historical Significance
Indonesia was a significant provider of voluntary carbon credits in Asia before export restrictions were imposed in 2022. Major companies like Volkswagen and Shell have been key purchasers of the nation's credits.