IBCSD, IDCTA Push Stronger Carbon Market to Boost Indonesia’s Industrial Competitiveness

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Ecobiz.asia – The Indonesia Business Council for Sustainable Development (IBCSD) and the Indonesia Carbon Trade Association (IDCTA), with support from IDX Carbon, have called for stronger implementation of Indonesia’s carbon market to help domestic industries remain competitive amid tightening global decarbonization policies.

The call was made during the National Carbon Market Readiness and Corporate Carbon Governance Strategic Forum, held at the Indonesia Stock Exchange in Jakarta on Tuesday (July 14, 2026). The forum brought together government officials, businesses, financial institutions, investors, and carbon project developers to discuss accelerating the implementation of Indonesia’s carbon pricing framework and strengthening the country’s carbon market ecosystem.

The event forms part of the lead-up to the Carbon Digital Conference (CDC) 2026, scheduled for Dec. 8–9 in Jakarta, with discussions focusing on carbon market governance, private sector participation, and corporate readiness for emerging global climate regulations.

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IBCSD Executive Director Indah Budiani said carbon markets have evolved beyond an environmental policy instrument and are increasingly becoming a business strategy for companies seeking to remain competitive in a low-carbon economy.

“For businesses, carbon markets are an instrument to accelerate decarbonization investment. Companies that effectively manage their emissions and gain access to credible carbon markets not only strengthen their competitiveness but also unlock financing opportunities, innovation, and access to global markets,” Budiani said on behalf of IBCSD President Sihol Aritonang.

She said the development of Indonesia’s carbon market has gained momentum following the issuance of Presidential Regulation No. 110/2025 on Carbon Economic Value Instruments and the launch of the Carbon Unit Registry System (SRUK).

Budiani added that the expansion of carbon pricing policies worldwide, including the European Union’s Carbon Border Adjustment Mechanism (CBAM), has made carbon management an increasingly important factor affecting international trade, investment decisions, and industrial competitiveness.

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The forum also featured I Nyoman Suka Yasa, Head of the Special Examination, Financial Derivatives, Carbon Exchange, and Securities Transaction Supervision Department at Indonesia’s Financial Services Authority (OJK), who outlined recent developments in Indonesia’s carbon market.

Nyoman said OJK continues to strengthen the Indonesia Carbon Exchange ecosystem by enhancing institutional capacity, improving national coordination, aligning market development with international practices, and expanding global collaboration.

“We hope more industries will actively participate so that Indonesia’s carbon market becomes more credible, transparent, and capable of supporting the country’s decarbonization targets,” he said.

IDCTA Chairman Riza Suarga said the long-term success of Indonesia’s carbon market will depend on a combination of high-quality carbon projects, robust demand, and transparent trading mechanisms.

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“A carbon market will only grow if it is supported by credible projects, strong demand, and transparent trading mechanisms. Our challenge today is to build an ecosystem capable of generating sustainable transactions,” Suarga said.

Participants also discussed the implementation of complementary carbon pricing instruments, including carbon taxes, emissions trading systems (ETS), and carbon markets, as part of Indonesia’s broader decarbonization strategy.

Other topics included industry preparedness for the EU’s CBAM, the development of carbon projects that meet international standards, and expanding the pipeline of investment-ready carbon projects to serve both domestic and international markets.

IBCSD and IDCTA said they expect the forum to strengthen collaboration among government agencies, businesses, financial institutions, investors, and project developers, helping mobilize green investment, accelerate credible decarbonization projects, and enhance the global competitiveness of Indonesian industry. ***

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