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Understanding the Carbon Market Ecosystem: Navigating Opportunities and Challenges for Indonesia



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Understanding the Carbon Market Ecosystem: Navigating Opportunities and Challenges for Indonesia

InfoSAWIT, JAKARTA – Efforts to strengthen public understanding of Indonesia's carbon market mechanism continue. PT Penabulu Upacaya Semesta held a national webinar titled “Understanding the Carbon Market Ecosystem: Opportunities and Challenges for Indonesia” to serve as a platform for education and cross-sector dialogue on the future of the green economy and national climate policy.

Dr. I Wayan Susi Dharmawan, Senior Expert Researcher at the National Research and Innovation Agency (BRIN), emphasized that Indonesia is entering a crucial phase in building a credible and high-integrity carbon trading system, following the issuance of Presidential Regulation (Perpres) No. 110 of 2025 on the Implementation of Carbon Economic Value (NEK) Instruments.

Dr. Wayan added that the system opens up great opportunities for various sectors—from forestry and energy to agriculture—to generate carbon credits that can be traded nationally and internationally. With the potential to account for 70% of total global carbon unit transactions, or around Rp 8,000 trillion, Indonesia can become a major player in the global carbon market.

Dr. Dadan Mulyana, Senior Forestry Researcher, highlighted that carbon trading is not solely economically driven but also an instrument for achieving climate justice and improving community welfare. However, he cautioned against crucial challenges, such as the massive funding need (USD 24.6 billion for the FOLU sector), weak regulation that risks carbon grabbing, and low community capacity to understand the market mechanism.

The webinar concluded that a transparent and inclusive carbon ecosystem must resolve tenurial and land access issues for indigenous communities to ensure the economic benefits truly reach the grassroots. (T2)


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