Ecobiz.asia – Deputy Speaker of Indonesia’s People’s Consultative Assembly (MPR) and member of House of Representatives Commission XII, Eddy Soeparno, has urged the government to establish a comprehensive carbon balance across all sectors before expanding the country’s carbon trading activities.
Speaking during a hearing between Commission XII and the Ministry of Environment/Environmental Control Agency (KLH/BPLH) in Jakarta on Monday (July 6, 2026), Eddy said Indonesia must have a clear understanding of its emissions profile and reduction trajectory before selling carbon credits internationally.
“Every sector—including industry, energy, marine, agriculture, and others—must have clear data on its emissions and how much those emissions will be reduced,” Eddy said.
He cautioned against accelerating carbon credit transactions without first ensuring that Indonesia has a surplus of emission reductions.
According to Eddy, a national carbon balance would provide the government with a stronger basis for determining how much emission reduction can be allocated toward meeting Indonesia’s climate commitments and how much could potentially be traded in carbon markets.
During the hearing, KLH/BPLH also presented its roadmap for implementing carbon pricing instruments under Indonesia’s climate policy framework.
The presentation outlined several mechanisms being prepared, including emissions trading, greenhouse gas offset certificates, and the National Registry System (SRN), while emphasizing safeguards against double counting and the protection of Indonesia’s Nationally Determined Contribution (NDC).
The ministry also highlighted the scale of Indonesia’s climate financing needs. Achieving the country’s Second NDC is estimated to require around US$472.6 billion, while cumulative national climate spending between 2016 and 2023 amounted to only US$36.2 billion, underscoring the significant financing gap facing Indonesia’s climate transition. ***
