INDONESIA CARBON MARKET OUTLOOK 2026: A Policy Dialogue Towards a Credible, High-Integrity and Transparent Carbon Market
Key stakeholders from the Government of Indonesia, the private sector, and project developers from the carbon markets ecosystem gathered today at the Hotel Borobudur Jakarta for the Indonesia’s Carbon Market 2026: A National Policy Dialogue. The dialogue marks an important milestone in aligning a shared understanding of the implementation of Indonesia’s carbon economic value (NEK), as the country transitions from policy formulation towards market operationalisation. This event was convened by UK Partnering for Accelerated Climate Transitions (UK PACT), implemented by EcoSecurities and the Institute for Development of Economics and Finance (INDEF).
The policy dialogue will strengthen stakeholder cooperation and buy-in, while enhancing the readiness of both public and private sectors for credible, transparent and high-integrity carbon markets. Its aims include improved technical capacity, stronger institutional coordination, and the development of robust carbon markets infrastructure, particularly the National Carbon Unit Registry System (SRUK) and the Measurement, Reporting, and Verification (MRV) framework.
As Southeast Asia’s largest economy, Indonesia holds significant emissions reduction and green growth potential across land use, energy, and industrial sectors. With global carbon markets evolving rapidly, driven by cross-border policy developments, net zero commitments, and the operationalisation of Article 6 of the Paris Agreement, Indonesia has both a clear opportunity and an urgent imperative to establish a credible, high-integrity domestic carbon market. A robust MRV framework, transparent registry infrastructure, and clear governance arrangement will be essential to enable international cooperation and position Indonesia as an investment-ready carbon market participant.
British Ambassador to Indonesia Dominic Jermey, said: “Today’s policy dialogue demonstrates the UK–Indonesia Strategic Partnership in action. It highlights the depth of our cooperation, which will be crucial in unlocking investment and accelerating Indonesia’s low‑carbon transition towards achieving net zero.”
The UK has been a long-standing partner in supporting the development of Indonesia’s carbon markets. The UK and Indonesia further underlined our collaboration through the Ministry of Forestry’s recent announcement that it will join the Coalition to Grow Carbon Markets. This initiative is led by the United Kingdom, Kenya, and Singapore; through this and our UK PACT programme, we are proud to build on our partnership with Indonesia to advance credible, high-integrity, transparent, and internationally aligned carbon markets.
Vice Minister of Environment of the Republic of Indonesia, Diaz Hendropriyono, said: “With global temperatures already 1.6°C above pre-industrial levels, more severe climate impacts are intensifying in Indonesia. At the same time, the climate financing gap remains significant, both globally and domestically. A credible carbon market will be critical to help close this gap. Indonesia is advancing its market infrastructure, including the operationalization of SRUK by mid-2026, with the system currently ready for pilot testing, and preparing to bring up to 70 million tons of carbon units into the market.”
Head of Steering Committee of Carbon Economic Value, Nani Hendiarti, said: “This forum calls for concrete action: aligning a common understanding of Perpres 110/2025, accelerating sectoral regulations by June 2026, and ensuring readiness of SRUK across ministries and agencies. Strong coordination will be key to building a credible and operational carbon market in Indonesia.”
According to Pedro Carvalho, Project Director of PROTECT at EcoSecurities, Indonesia has made significant progress in building the foundations of a credible carbon market. “Through PROTECT, we support the strengthening of systems, infrastructure, and collaboration to ensure that Indonesia’s carbon market develops in a transparent, high-integrity manner and is well-positioned to play a role at the global level.”
According to Esther Sri Astuti, Executive Director, INDEF, cross-stakeholder collaboration is key to advancing Indonesia’s carbon market. “Forums such as the Indonesia Carbon Market Outlook play an important role in fostering shared understanding and advancing inclusive and sustainable implementation readiness.”
Discussions across the forum shifted from regulatory socialisation to practical implementation pathways, focusing on institutional coordination, MRV readiness, SRUK operational workflows, and the interaction between carbon market instruments and financial sector oversight. Panel sessions with key ministries, financial regulators, and market operators highlighted near-term priority actions and enablers, particularly those needed to ensure system interoperability and readiness for future international engagement.
The forum underscored that the success of Indonesia’s carbon market will depend not only on regulatory clarity but also on implementation readiness and market trust. Ensuring high-integrity MRV systems, a transparent and functional registry through the National Carbon Unit Registry System (SRUK), and strong inter-institutional coordination will be critical to building confidence among market participants and international partners. As Indonesia moves forward, alignment among policy, infrastructure, and market actors will determine its ability to unlock investment, scale carbon pricing instruments, and participate effectively in global carbon market mechanisms.
Click here to download the full press release in English and Bahasa.