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Carbon Market Implementation Progress Report 2024

Current status and achievements of Indonesia's carbon pricing implementation

Updated: November 7, 2025•Created: November 6, 2025
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# Carbon Market Implementation Progress Report 2024
Executive Summary
As of Q4 2024, Indonesia has made significant progress in establishing its carbon pricing system. The Indonesia Carbon Exchange (IDX Carbon) has been operational for 15 months, with growing trading volumes and market participation.
Key Achievements
## Key Achievements

Regulatory Framework

✓ Presidential Regulation 112/2022 enacted ✓ Minister of Environment Regulation on MRV issued ✓ Minister of Finance Regulation on carbon tax published ✓ OJK market supervision rules finalized

Market Infrastructure

✓ IDX Carbon trading platform operational since Sept 2023 ✓ National Carbon Registry (SRN) launched ✓ 45 compliance entities registered ✓ 120 offset projects in pipeline

Trading Activity (Jan-Nov 2024)

- Total volume: 2.3 million tCO2e - Average price: IDR 85,000/tCO2e ($5.50) - Number of transactions: 487 - Market participants: 78 entities

Carbon Tax Implementation

- Coal sector: IDR 30,000/tCO2e since April 2022 - Revenue collected: IDR 1.2 trillion ($78 million) - Planned expansion: All fossil fuels by 2025
Sectoral Progress
## Sectoral Progress

Power Sector

- 25 coal-fired power plants participating - Baseline emissions established - Free allocation completed for 2024 - First compliance period: April 2025

Forestry Sector

- 35 REDD+ projects registered - 1.5 million credits issued - Average price: IDR 95,000/tCO2e - International buyers from Japan, Singapore, EU

Industrial Sector

- Pilot program with 10 cement plants - Voluntary participation in 2024-2025 - Mandatory compliance from 2026 - Technical assistance provided
Capacity Building
## Capacity Building

Training Programs

- 500+ MRV practitioners trained - 50 verification bodies accredited - 200 government officials trained - 1,000+ industry participants educated

Technical Assistance

- World Bank support for registry development - ADB support for market design - GIZ support for MRV capacity - UNDP support for stakeholder engagement
Challenges and Lessons Learned
## Challenges and Lessons Learned

Market Liquidity

- Challenge: Low trading volumes in early months - Response: Market maker program introduced - Result: Improved liquidity since Q3 2024

Price Discovery

- Challenge: Price volatility in initial phase - Response: Price stabilization mechanisms activated - Result: More stable prices since mid-2024

Stakeholder Readiness

- Challenge: Limited understanding of carbon markets - Response: Extensive outreach and training - Result: Growing confidence and participation

Data Quality

- Challenge: Inconsistent emissions data - Response: Strengthened MRV requirements - Result: Improved data reliability
Next Steps (2025-2026)
## Next Steps (2025-2026)

Market Expansion

- Include cement and steel sectors - Launch futures contracts - Develop options market - Increase auction share to 30%

Policy Enhancement

- Increase carbon tax to IDR 75,000/tCO2e - Tighten ETS cap by 5% - Expand offset eligibility - Strengthen enforcement

International Linkage

- Finalize Article 6.2 agreement with Singapore - Explore linkage with Japan JCM - Participate in ASEAN carbon market initiative - Engage with EU on CBAM implications

Stakeholder Engagement

- Annual carbon market forum - Quarterly industry consultations - Public awareness campaigns - Civil society dialogue