Ecobiz.asia – Indonesian carbon project developer VCarboN is looking beyond the voluntary carbon market (VCM) to tap compliance carbon markets, seeking to expand international demand for Indonesian carbon credits through bilateral cooperation under Article 6 of the Paris Agreement, including with South Korea.
VCarboN Founder Heppy Trenggono said Indonesia possesses one of the world’s largest portfolios of nature-based carbon assets, but greater efforts are needed to ensure domestic projects gain access to international carbon markets.
“Indonesia has enormous potential in nature-based carbon assets. The challenge is not only producing high-quality, high-integrity carbon credits, but also ensuring these assets can access international markets, both voluntary and compliance markets,” Heppy said in a statement as quoted on Wednesday (Aug. 12, 2026).
He said Indonesia’s bilateral cooperation with several countries under Article 6, including South Korea, should translate into tangible market opportunities for Indonesian carbon projects.
“The Indonesia–South Korea cooperation framework has been established at the government level. For industry players, the next priority is ensuring these frameworks create real market access and commercial transactions for Indonesian carbon projects,” he said.
According to Heppy, while the voluntary carbon market will remain an important source of demand, project developers should also prepare to participate in compliance markets through mechanisms such as Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6.
As part of that effort, Heppy recently met with Environment Minister Moh Jumhur Hidayat to discuss the development of Indonesia’s carbon industry and strategies to strengthen international market access.
During the meeting, Jumhur said the government would continue refining Indonesia’s carbon market regulations to support industry growth.
“We will continue improving the regulatory framework needed to ensure Indonesia’s carbon industry can develop effectively,” Jumhur said.
He added that the government is also developing benefit-sharing mechanisms to ensure carbon projects generate broader economic benefits for local communities.
“It is important that every project has a clear benefit-sharing mechanism. We are also formulating policies to enable wider public participation in Indonesia’s carbon industry,” he said.
VCarboN is currently developing a portfolio of nature-based carbon projects focused primarily on peatland and mangrove ecosystems. The company is also building partnerships with industry players and international buyers to expand market opportunities for Indonesian carbon credits.
“We see the voluntary and compliance carbon markets as complementary. The broader Indonesia’s access to both markets, the stronger the country’s position in the global carbon economy,” Heppy said. ***
