Antara News·Indonesia·Tuesday, September 29, 2026 at 06:16 PM

Indonesia offers carbon market incentives to global green investors

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Aria Ananda, Yashinta Difa

Jakarta (ANTARA) - Indonesia is offering carbon market incentive schemes to global business leaders investing in green projects across the archipelago, Coordinating Minister for Food Zulkifli Hasan announced during the 81st UN General Assembly and Climate Week NYC 2026.

Addressing more than 20 global corporate executives at the High-Level and CEO Forum on Low-Emission Rice and Sustainable Agriculture in New York, the minister emphasized that carbon pricing mechanisms would allow investors to unlock additional financial value from verifiable emissions reductions in Indonesia.

"Indonesia is facing a waste emergency that must be addressed immediately, one of which is through waste-to-energy. Therefore, the government is encouraging green investment in the waste sector as a priority," Zulkifli said in a statement on Tuesday (September 29).

Zulkifli outlined three primary sectors open to green investment: sustainable agriculture through low-emission rice cultivation, waste-to-energy processing, and marine conservation through blue carbon development. As chair of the Carbon Economic Value (NEK) Steering Committee, he said Jakarta is streamlining regulatory frameworks and strengthening carbon trading governance to ensure high-credibility carbon assets.

A key step came on July 6, 2026, when the Financial Services Authority (OJK) enacted POJK No. 10/2026, mandating that all exchange-traded carbon units be formally registered under the Carbon Unit Registry System (SRUK).

OJK data as of August 31, 2026, revealed that 159 service users have registered on the Indonesian Carbon Exchange since its inception on September 26, 2023. Total transaction volume reached 1.98 million tons of CO2 equivalent (tCO2e), with a cumulative value of Rp93.90 billion (approximately US$5.24 million).

Government projections indicate that the carbon pricing framework could mobilize up to US$5.80 billion in green investment while reducing greenhouse gas emissions by roughly 570 million tCO2e.

Beyond waste management, Indonesia is seeking various international partners to scale up low-emission rice production to strengthen domestic food security while reducing agricultural methane emissions.

Zulkifli noted that implementing low-emission rice cultivation on a large scale requires technological support, financing, market certainty, and clear economic benefits for farmers. He added that climate action must translate into concrete, field-level projects that directly benefit farmers and coastal communities.

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