Indonesia plans launch of forestry-based carbon offset trade soon

14/3/2025 16:33

Indonesia plans to launch sales of carbon offsets from its forestry sector soon, while authorities work on recognising existing international standards, state news agency Antara reported.



The Southeast Asian country stopped cross-border carbon trade in late 2021, wanting to prioritise meeting its own carbon reduction targets as it sets up broad rules on carbon trading.



The government launched a domestic carbon exchange in 2023 and in January, the exchange began allowing sales of carbon credit certificates to foreign buyers, but certificates offered were all from carbon reductions from energy projects.



Trade of carbon offsets from the forestry sector by private companies and community-managed forests will soon be launched, said Forestry Minister Raja Juli Antoni, according to a Thursday Antara report.



There is potential for up to 3.2 trillion rupiah (nearly $200 million) of carbon transactions a year from this sector in 2025, the ministry said, predicting transactions between 97.9 trillion rupiah to 258.7 trillion rupiah by 2034.