Indonesia expands forestry carbon market under new regulation

26/05/2026 14:09
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KPL - Asean 2024 (KPL/VNA) Indonesia is expanding opportunities for international investment into its forestry carbon market through a new regulation aimed at simplifying carbon trading procedures and increasing the supply of high-integrity carbon credits, according to a senior official from the Ministry of Forestry.

Edo Mahendra, senior advisor to the minister of forestry, said on May 25 that the country has entered “a new chapter in the carbon market era” following the issuance of Regulation No. 6/2026 by the ministry.

​He noted that the new regulation is designed to promote carbon trading in the forestry sector by establishing clearer and more streamlined business processes, while meeting the growing global demand for high-quality carbon credits and ensuring environmental integrity.

The Indonesian government is also expanding access to carbon investment mechanisms, including a “nesting” approach aimed at preventing the double counting of carbon credits and strengthening market confidence, the official said.

​Edo said the government is working to ensure Indonesia remained at the forefront of the global carbon market rather than becoming a follower, adding that it would continue strengthening the country’s credibility by meeting international market standards.

​Indonesia is home to one of the world’s largest tropical forest areas, regarded as a critical resource in absorbing carbon and addressing global climate change.

KPL