Indonesia has approved its first batch of four forestry carbon projects for international trading, a move that could generate around 31 million tonnes of CO2e in emission reductions and an estimated transaction value of Rp5 trillion (USD 305 million). The projects include three private concessions and one community forestry initiative, covering peatland and forest conservation in Sumatra, Kalimantan, and Jambi. The government will issue carbon credits on July 6, ahead of the launch of its national Carbon Unit Registry System (SRUK) on July 9, which will serve as the central infrastructure for domestic and international carbon transactions. The approvals follow recent regulatory reforms including Presidential Regulation No. 110 of 2025 and updated forestry rules aimed at improving environmental integrity and investment certainty. The inclusion of the Bujang Raba community forestry project signals an effort to ensure local communities benefit alongside private developers. Indonesia estimates the four projects could generate around Rp5 trillion in transaction value and Rp500 billion in non-tax state revenue from carbon trading fees. The SRUK launch is expected to strengthen transparency and traceability in Indonesia's carbon market, supporting the country's goal of positioning green growth as a new economic engine.
