Workshop Carbon Market Introduction and Outlook In Indonesia

Background


The carbon market in Indonesia is currently in its early stages of development, but there is much anticipation for what it can accomplish to advance Indonesia’s climate goals. On top of Indonesia’s many years of experience engaging in carbon projects in the forestry sector, the government has drafted policies and regulations that aim to lay the foundations for a carbon market. Notably, in August
2023, Indonesia’s Financial Services Authority (OJK) introduced a regulation regarding carbon trading
via carbon exchanges, shortly followed by the launch of the IDXCarbon. Although IDXCarbon currently remains relatively nascent with low turnover, Indonesia has an ambition to advance its carbon market towards achieving the country’s net zero targets.

Along with this expected growth comes an opportunity for relevant stakeholders in the public and private sectors to convene, discuss, and advocate for the Indonesian carbon market landscape that they envision. Dialogues considering the wide range of expertise and perspectives from relevant government ministries, project developers, sectoral experts, academia, civil society organizations, development agencies, financiers, and international experts, among others, can yield the ideas and create the momentum to accelerate carbon markets in Indonesia.

In addition, with countless opportunities for companies to participate in various carbon market activities, interested parties can benefit from the expertise to be offered by both national and international experts in the network. The time to start capacity building is now, as Indonesia continues to develop the carbon market landscape.

To accelerate further growth of the carbon market landscape, an initiative by Neyen Consulting and its partners, the Indonesia Carbon Trade Association (IDCTA), Dana Ilmu Pengetahuan Indonesia (DIPI), and Yayasan Bina Usaha Lingkungam (YBUL), will develop regular carbon market workshops under the inFUSE Accelerator brand. inFUSE Accelerator is a community enhanced program to develop and deepen participation in Carbon Markets in Southeast Asia and to help supply chain operators to decarbonize by measuring, reducing and mitigating their GHG emissions.

It brings together local experts and partners, works to develop a pipeline of talent with local universities and offers support for carbon projects through specialist consulting services.

The objectives of the workshop are:

1. To create a shared understanding by providing capability training on the current developments in the international carbon market, including its definition, progress, and how it works.;
2. To explore the challenges and opportunities faced by the carbon market key actors,
including but not limited to project developers, sectoral experts, academia, civil society organizations, development agencies, to drive the establishment of a robust carbon market in the country.
3. To promote a collaborative community to drive discussions and develop and share knowledge and best practices in Indonesia’s carbon market.