Indonesia's carbon market: the region's biggest pipeline, reopened to the world

The policy picture

Indonesia spent 2023 and 2024 holding its credits at home. Presidential Regulation 110/2025, signed in October 2025, reversed that. Carbon trading may now proceed before Indonesia meets its own NDC targets, the earlier requirement for mutual recognition agreements with standards such as Verra and Gold Standard is gone as a gateway, and a steering committee chaired by the Coordinating Minister for Food oversees the market. The 2025 agreements with Verra, Gold Standard, Plan Vivo and the Global Carbon Council remain as quality signals.

The implementing rules followed in 2026: forestry ministry regulations on offsets, OJK rules aligning the exchange, and a Ministry of Environment regulation that switched on the new Carbon Unit Registry System on 9 July, with every transaction to be recorded within two working days. On 6 July the government cleared the first four forestry projects for international trading, Katingan Mentaya, Sumatera Merang, The Mayas and Bujang Raba, together about 225,000 hectares and more than 30 million tonnes expected through Verra and Plan Vivo. We have not seen confirmation that a corresponding adjustment has yet been applied.

On the compliance side, IDXCarbon has run since September 2023 and opened to international buyers in January 2025, but international volume has been thin. The power-sector emissions trading scheme is in its second phase (2025–27), now covering captive coal and gas plants as well as grid-connected coal. The carbon tax written into law in 2021 has never been enforced.

Abroad, Indonesia signed an Article 6 agreement with Norway in June 2025, and a carbon credit MoU with Singapore on 6 July 2026; an Implementation Agreement with Singapore is still to come, so Indonesian projects are not yet eligible for Singapore's tender. In parliament, some members have argued for a national carbon balance before more international sales. That is a debate, not a ban.

What the registries show

Indonesia has the largest pipeline in Southeast Asia and has issued more credits than any other country in the region. The issuance is concentrated: two peatland and REDD+ projects in Central Kalimantan, Katingan and Rimba Raya, account for most of it, and Rimba Raya is now flagged by Verra as late to verify. The pipeline is forestry-heavy too, with REDD+, peatland and mangrove projects across Kalimantan, Sumatra and Maluku, alongside wastewater methane, geothermal and hydropower.

Where the credits have come from

Credits issued and retired to date, Berkeley Voluntary Registry Offsets Database (2026-06 release).

The largest projects not yet issuing

Claimed tonnes per year are the proponent's own estimate as filed with the registry, before validation.

Who is developing

South Pole is the most active developer by project count. PLN, the state utility, holds the large hydropower projects. The forestry pipeline is led by Indonesian concession holders, often working with Singapore-registered developers.

Developers grouped across registries and spellings by CarbonIntel. A project with several proponents counts for each.

Latest registry moves

• 2026-09-25Gerbang Barito REDD+ ProjectPipeline listing requested (under validation) → Under validation (Public comment period open)

What we are watching

• The first corresponding adjustment applied to an Indonesian forestry credit.
• Negotiations on a Singapore Implementation Agreement, which would make Indonesia eligible for Singapore's tender.
• Rimba Raya's verification, after its late-to-verify flag.
• Energy-sector implementing rules under Perpres 110, still pending.
• International trading volume on IDXCarbon.