Indonesia to Launch First International FOLU Carbon Credit Sale in July 2026, Targeting Over 30 Million Tons

MORE ARTICLES

Ecobiz.asia — Indonesia is preparing to launch its first international sale of forest and other land use (FOLU) carbon credits in early July 2026, with more than 30 million tons of emission reductions expected to enter the global market.

Edo Mahendra, Principal Advisor to Indonesia’s Minister of Forestry, said the carbon credits will originate from existing legacy projects that have already been implemented.

“In early July there will be the first trading activity. The FOLU sector will carry out the transaction. The volume could exceed 30 million tons of emission reductions from existing legacy projects,” Edo said during the Ministerial Dialogue on Climate Change at INVIROTECH 2026 in Jakarta on Thursday (June 11, 2026).

Read also:  IATA Warns EU ETS Expansion Could Undermine Global Aviation Carbon Scheme

According to Edo, Indonesia’s cross-border carbon trading framework has become more operational following the issuance of Presidential Regulation No. 110/2025 on Carbon Pricing.

To implement the regulation, the Ministry of Forestry has issued Minister of Forestry Regulation No. 6/2026 governing carbon trading procedures in the forestry sector, as well as Regulation No. 7/2026 covering carbon trading mechanisms in conservation areas.

The ministry is also preparing additional regulations governing carbon trading business processes and carbon projects within Indonesia’s social forestry areas.

Edo said the new presidential regulation strengthens coordination across sectors while formally opening Indonesia’s carbon market to international transactions.

Read also:  Indonesia Sees 3.9-GW Power Potential From Palm Oil Waste

Indonesia will provide two trading mechanisms: one through domestically certified emission reductions (SPE) and another through non-certified pathways using international standards and methodologies (Non SPE).

“We are opening both pathways,” he said.

All transactions will be recorded through Indonesia’s Carbon Registry Unit System (SRUK), which is being developed as the country’s central carbon registry platform.

Edo noted that Indonesia has become one of the pilot countries adopting the Common Carbon Credit Data Model developed under the G20 Sustainable Finance Working Group.

Read also:  Indonesia Issues New Carbon Trading Regulation for Agriculture Sector, Requires Farmer Benefit-Sharing

The new regulation also enables international carbon trading through corresponding adjustment mechanisms for transferred emission reductions, subject to recommendations from sectoral ministries and approval from the Ministry of Environment.

Indonesia sees major long-term potential in forest-based carbon projects. Edo said the country has around 12 million hectares of degraded land that could be developed into carbon offset projects.

In addition, around 48.7 million hectares of forest areas could support carbon reduction projects through sustainable forest management practices.

Further opportunities also exist within Indonesia’s 8.3 million hectares of social forestry areas and approximately 1.4 million hectares of customary foest. ***

LATEST STORIES

MORE ARTICLES

Indonesia Weighs Smelter Moratorium to Push Mineral Processing Further Downstream

Ecobiz.asia – Indonesia is considering a moratorium on new smelters producing semi-finished mineral products as the government seeks to push downstream processing further and...

Indonesia, Singapore Discuss Forest Fires as Jakarta Stresses Respect for National Sovereignty

Ecobiz.asia – Indonesia’s Environment Minister Moh Jumhur Hidayat has discussed forest and land fires with his Singaporean counterpart Grace Fu, stressing that both countries...

RSPO Rejects Claims Palm Oil Plantations Are Main Driver of Fires, Raises Sabotage Allegations

Ecobiz.asia – The Roundtable on Sustainable Palm Oil (RSPO) has rejected claims that oil palm plantations are the main source of forest and land...

Breakthrough Energy, Temasek Extend Southeast Asia Climate Tech Program Through 2030

Ecobiz.asia – Breakthrough Energy, Temasek and Enterprise Singapore have extended their climate technology innovation program in Southeast Asia for another three years, committing to...

Indonesia Sees 3.9-GW Power Potential From Palm Oil Waste

Ecobiz.asia – Indonesia could generate up to 3.9 gigawatts (GW) of electricity from palm oil waste, according to the National Research and Innovation Agency...

TOP STORIES

Indonesia Weighs Smelter Moratorium to Push Mineral Processing Further Downstream

Ecobiz.asia – Indonesia is considering a moratorium on new smelters producing semi-finished mineral products as the government seeks to push downstream processing further and...

Dukung Upstream Youth Champs 2026, PEP Sangasanga Field Ajak Mahasiswa Kenali Peran Strategis Industri Hulu Migas

Ecobiz.asia – PT Pertamina EP (PEP) Sangasanga mengenalkan proses bisnis dan peran industri hulu minyak dan gas bumi (migas) kepada mahasiswa Politeknik Negeri Samarinda...

Agrinas Palma Perkuat Sinergi dengan BNPB untuk Cegah Karhutla

Ecobiz.asia -- PT Agrinas Palma Nusantara (Persero) memperkuat koordinasi dengan Badan Nasional Penanggulangan Bencana (BNPB) untuk meningkatkan kesiapsiagaan dan mencegah kebakaran hutan dan lahan...

Bahlil Tekankan Hilirisasi Berkeadilan, 2.587 UMKM Dibina Industri Minerba

Ecobiz.asia — Menteri Energi dan Sumber Daya Mineral (ESDM) Bahlil Lahadalia menegaskan bahwa hilirisasi mineral dan batu bara harus memberikan manfaat ekonomi yang lebih...

Agincourt Resources Tampilkan Operasional Martabe dan Program Sosial di Minerba Convex 2026

Ecobiz.asia – PT Agincourt Resources (PTAR), pengelola Tambang Emas Martabe di Tapanuli Selatan, Sumatra Utara, menampilkan kegiatan operasional, konservasi lingkungan, pemberdayaan UMKM, dan program...