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Indonesian President Prabowo Subianto revives international carbon trading to boost state revenue. (Photo: Prabowo Subianto's Facebook)
Indonesia has reopened its carbon market to international buyers after a four-year hiatus. President Prabowo Subianto signed a presidential regulation on Oct. 10 allowing the cross-border sale of Indonesian carbon credits, aiming to generate additional state revenue.
However, a report from the Institute for Energy Economics and Financial Analysis (IEEFA) finds that trading activity on the Indonesia Carbon Exchange (IDX Carbon) remains sluggish more than two years after its launch, hampered by regulatory loopholes and slow administrative processes.
Cross-border trading resumes, with stricter quality requirements
According to copies of the presidential order obtained by Reuters and Bloomberg, the decree permits international buyers to purchase Indonesian-generated carbon credits, provided they meet national standards or comply with UNFCCC-accredited certification schemes.
