Jakarta – Carbon trading is one of the most important instruments in driving green development finance in Indonesia, especially in the context of the transition to clean energy. The carbon market is not only a tool to control emissions, but also opens up new financing channels that are increasingly attractive to the private sector and the state.
President Director of the Indonesia Commodity & Derivatives Exchange (ICDX), Fajar Wibhiyadi, stated that the growth trend of the carbon market in Indonesia is a strong signal of increasing awareness of the urgency of handling the climate crisis and the need for energy system transformation. During the Energi Mineral Festival 2025, themed “Energy Self-Sufficiency: Indonesia’s Future” on Wednesday, 30 July, he emphasised that carbon trading and the use of renewable energy certificates are no longer just technical options, but a reflection of collective responsibility.
Fajar highlighted that there are currently only two paths in energy transformation: voluntary awareness or regulatory pressure. “Sooner or later, everything has to change. If we don’t start now, we will be left behind,” he said.
According to him, the carbon market is not only an instrument to reduce emissions, but also a bridge to financing environmentally friendly projects. He cited the example of companies that develop solar power plants. Besides benefiting from the energy generated, they can also sell renewable energy certificates-an economic asset that is now highly valued in the global market.
“The economic benefits are twofold: from the electricity generated and from the renewable energy certificates. With a scheme like this, the financial incentive is stronger for investment in the green energy sector,” he explained.
Fajar is optimistic that the new government under President Prabowo Subianto will remain consistent in supporting the development of new renewable energy (NRE). This, he said, was reflected in the president’s commitment during the inauguration on 20 October 2024.
“We heard that energy self-sufficiency through EBT will be the foundation of Indonesia’s economic development in the future. This is certainly a breath of fresh air for business actors and stakeholders who have long been engaged in this sector,” he said.
Furthermore, Fajar emphasised that the energy transition is not just a moral obligation, but a national strategic opportunity. According to him, success in establishing an effective and credible carbon market will strengthen the national green financing structure and improve Indonesia’s economic competitiveness globally.
Currently, Indonesia is still in the early stages of developing domestic carbon market infrastructure. However, with the right regulations, clear incentives, and collaboration between the government and the private sector, the carbon market has the potential to grow into a key pillar in Indonesia’s journey towards its net-zero emission target by 2060. (Hartatik)
Banner photo: IDX Carbon opening. (Source: Indonesia Stock Exchange Youtube channel)
