Indonesia launched the Indonesia Forestry Carbon Hub on July 6, 2026, aiming to build a transparent, technology-driven carbon market focused on the forest sector. The initial phase covers verified pilot projects across 225,000 hectares with an estimated emissions reduction potential of 30 million tonnes of CO2 equivalent. The government expects the projects to generate around Rp5 trillion in transaction value and Rp500 billion in non-tax state revenue. The hub uses blockchain and API connections between the Verra Registry, the national Carbon Unit Registration System (SRUK), and the Indonesia Stock Exchange carbon exchange. This setup is meant to provide end-to-end traceability for carbon credit transactions. The Ministry of Forestry also issued ministerial approvals for carbon units under the Non-SPE GRK scheme for several forestry projects, including the Katingan Peatland Restoration and Conservation Project and the Sumatra Merang Peatland Project. Indonesia has streamlined 35 regulations to remove bureaucratic barriers for carbon market investment. The government also aims to restore 12.7 million hectares of degraded land, offering certified carbon credits to global investors. The Financial Services Authority (OJK) is developing sustainable finance policies and financing guidelines for pilot carbon projects, with a focus on ensuring local communities benefit from forest conservation efforts.
