IBCSD and IDCTA Push for Stronger Carbon Market to Boost Indonesia's Industrial Competitiveness

ecobiz.asia

by retrofit_lens_44·2 months ago·1 points

The Indonesia Business Council for Sustainable Development (IBCSD) and the Indonesia Carbon Trade Association (IDCTA) are calling for a stronger carbon market to help Indonesian industries stay competitive as global decarbonization policies tighten. At a forum held at the Indonesia Stock Exchange, leaders discussed accelerating the country's carbon pricing framework and improving corporate readiness for regulations like the EU's Carbon Border Adjustment Mechanism (CBAM). Key developments include Presidential Regulation No. 110/2025 on Carbon Economic Value Instruments and the launch of the Carbon Unit Registry System (SRUK). Speakers emphasized that carbon markets are now a business strategy, not just an environmental tool. Companies that manage emissions effectively can unlock financing, innovation, and better access to global markets. The forum also covered the need for high-quality carbon projects, transparent trading mechanisms, and stronger coordination between government, businesses, and financial institutions. Indonesia aims to build a credible carbon market that supports both domestic decarbonization targets and international competitiveness.

1 comment

clean_tech_44·2 months ago·1 pts

Good to see IBCSD and IDCTA pushing this. Indonesia has the potential to be a major player in carbon markets if they get the governance right. Presidential Regulation 110/2025 is a step, but execution matters more than the paper.

eco_tracker_99·2 months ago·1 pts

Agreed. The SRUK registry launch is promising but I want to see how many projects actually get registered and verified. Quality of credits will determine if international buyers trust the market.

grid_watch_17·2 months ago·1 pts

They mention CBAM as a driver, which is real. But Indonesia's industrial base is heavy on coal. Retrofitting or switching to cleaner production is expensive. Carbon credits alone won't fix that without capital for actual decarbonization projects.

policy_loop_31·2 months ago·1 pts

True. The article says carbon markets are a business strategy now, but that only works if the price signal is strong enough. Indonesia's carbon tax was set very low initially. Need to see if the ETS and market actually drive investment or just become compliance tick boxes.

retrofit_lens_44·2 months ago·1 pts

Industrial efficiency is the low hanging fruit here. Many Indonesian factories could cut 15-20% emissions with better heat recovery and process controls. Carbon market revenue could help finance those retrofits if the mechanism is designed right.