Ecobiz.asia — Four companies from Japan and Indonesia have signed a memorandum of understanding (MoU) to conduct a feasibility study on applying the Joint Crediting Mechanism (JCM) through Nature-based Solutions (NbS) projects in Indonesia.
The study marks the first step in developing a Wetland Restoration and Conservation (WRC) project aimed at reducing emissions and enhancing cross-border carbon sequestration between the two countries.
The collaboration involves INPEX Corporation and Sustainacraft Inc. from Japan, alongside PT Merdeka Sejahtera Persada (Dassa) and PT Jaga Planet Indonesia from Indonesia.
“This collaboration opens major opportunities to bring international best practices into the JCM framework,” said Sylviana Andhella, President Director of PT Merdeka Sejahtera Persada (Dassa), in a statement on Tuesday (Oct 14, 2025).
“With over a decade of experience in carbon project design and implementation, we hope this study will strengthen the integration of Nature-based Solutions within the bilateral carbon credit system.”
The MoU was signed simultaneously in Jakarta and Tokyo on Sept 12, 2025, with the study expected to run for six months.
This initiative represents the first effort to develop a JCM methodology dedicated to wetland restoration and conservation, a sector not yet covered by the existing JCM framework.
The study will focus on creating methodologies aligned with national climate policies, Monitoring, Reporting and Verification (MRV) standards, and social and environmental co-benefits for local communities.
If successful, the partners plan to establish a definitive agreement outlining benefit-sharing mechanisms, investment priorities, and opportunities for international carbon credit trading.
The partnership is seen as a milestone in integrating Nature-based Solutions into the JCM carbon trading scheme, supporting both Indonesia’s and Japan’s Nationally Determined Contributions (NDCs) under the Paris Agreement. ***
