Indonesia Reopens Carbon Market to Foreign Buyers With New Rules

(Bloomberg) -- Indonesia reopened its carbon credits market to foreign buyers, ending years of uncertainty that have curbed the sector’s development.

Credits produced by Indonesian projects can be sold to international buyers looking to voluntarily offset their emissions, according to a presidential decree signed Oct. 10 and seen by Bloomberg. The offsets must be verified by accredited bodies using international standards, and can contribute to Indonesia’s own climate targets.

The decree offers clarity for global investors after years of uncertainty that have hampered the development of Indonesia’s carbon market. The Southeast Asian country — which has some of the world’s largest rain forests — suspended sales of new credits to foreign buyers a few years ago to review their role in meeting its own climate goals.

Indonesian President Prabowo Subianto, who has rolled out ambitious spending plans since taking office last year, has touted the carbon credits as a potential source of government revenue. A representative for the president’s office didn’t immediately respond to messages seeking comment.

While Indonesia reopened its domestic carbon exchange to foreign participants this year, overseas purchases have remained limited. Offset project developers have been waiting for regulatory clarity before resuming sales.

In 2024 the government revoked the license of one of the world’s largest carbon offset projects, PT Rimba Raya Conservation. The move was later overturned by a local court. 

Eco.biz and other local media reported the new regulation earlier.

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