Indonesia’s local companies make up 90% of carbon market buyers, IDX reveals

IDX Carbon named best official carbon exchange in an emerging economy by Green Cross. (Photo: IDX)

Indonesia’s official carbon exchange platform, IDX Carbon, has recorded nearly 1.6 million tons of carbon traded since its launch, with 90% of buyers coming from the domestic market. The exchange aims to reach a total transaction volume of 3 million tons by the end of this year.

IDX Carbon was recently recognized as the “Best Official Carbon Exchange in Emerging Markets” by the international NGO Green Cross, a distinction expected to boost the platform’s visibility among global climate stakeholders.

Local financial institutions drive market growth

Launched in 2023 under the auspices of the Indonesia Stock Exchange (IDX), the carbon exchange has seen cumulative trading reach 1,599,325 tons of CO₂ equivalent as of July 11, with total transaction value amounting to IDR 7.795 billion (about USD 4.7 million). The number of registered users has increased significantly from 16 to 113.

The volume of carbon credits retired has also surged, from just 6,260 in 2023 to 980,475 by mid-2025. Iman Rachman, President Director of IDX, noted that financial institutions and corporations are the primary participants in Indonesia’s carbon market. A newly published trading handbook aims to increase market awareness and encourage broader participation.

According to the SRN-PPI, Indonesia’s national carbon registry, the exchange currently lists eight credit-generating project types, including geothermal, small-scale hydropower, and biogas from palm oil mill effluent. In total, 3,054,454 carbon credits have been registered to date.

The IDX Carbon lists eight credit-generating project types, including geothermal, small-scale hydropower, and biogas from palm oil mill effluent. Pictured is the Salak geothermal power plant in Indonesia. (Photo: Star Energy)

IDX Carbon named top emerging market exchange

Jeffrey Hendrik, Director of Development at IDX, noted that international trading was only launched in January this year, which explains the current domestic focus. While 90% of buyers are local, no further details on buyer identities were disclosed, citing confidentiality. All transactions on IDX Carbon are private by default, Hendrik emphasized.

Looking ahead, IDX plans to continue expanding initiatives such as the “Net Zero Incubator,” which helps companies conduct carbon footprint assessment and prepares them to participate in the carbon market. The exchange aims to attract more international buyers, expand its user base to 150, and reach 3 million tons in trades by year-end.

In June, IDX Carbon received the Carbon Positive Award 2025 and was recognized as the Best Official Carbon Exchange in Emerging Markets, making it the only Indonesian organization to earn this distinction.

The Carbon Positive Award is organized by Green Cross, a UK-based non-profit organization that honors contributions to both compliance and voluntary carbon markets. This year, 1,428 organizations were nominated, with only 100 selected as winners, IDX Carbon among them.

IDX attributes its success to the strong infrastructure provided by the Financial Services Authority (OJK) and the national registry system, which ensures traceability of carbon credits and reduces the risk of double counting. Together, these frameworks have positioned Indonesia as a key carbon trading hub among emerging markets.

Source: IDX, Jakarta Globe, VOI