Toute l'actualitéAfter four years of suspension, Indonesia is finally reopening the door to international carbon credit trading. This major regulatory shift could position the country as a strategic hub of the global carbon market—at the crossroads of sovereignty, transparency, and ecological transition. The timing is particularly significant for Reforest’Action’s carbon project on the island of Sumba, Indonesia.
Indonesia’s carbon market: a gradual structuring
A moratorium to regain control
In 2021, Indonesia decided to suspend all carbon credit exports. Behind this move lay a clear political intention: to regain control over a booming market where some projects—particularly those linked to avoided deforestation (REDD+)—had raised concerns regarding their integrity and the fair distribution of benefits. The moratorium, presented as a temporary measure, was designed to give the government time to develop a robust domestic regulatory framework.
Building a domestic market, step by step
In the years that followed, Indonesian authorities began structuring a national carbon market. Initially designed around the compliance market, this framework provided little visibility for actors in the voluntary carbon market (VCM) or for project developers seeking to rely on international standards such as Gold Standard or Verra.
The launch of the Indonesian carbon exchange, IDX Carbon, in January 2025 marked an important milestone. For the first time, international actors were allowed to participate—although trading remained limited to “tech-based” credits from emission reduction technologies such as renewable energy or energy efficiency. Nature-based credits (linked to forests, soils, and biodiversity) continue to be closely monitored.
Mutual Recognition Agreements: the key to openness
From spring 2025 onwards, the Indonesian government accelerated its efforts. A series of Mutual Recognition Agreements (MRAs) signaled a new direction: opening up to international standards, but under controlled conditions.
A Mutual Recognition Agreement (MRA) is a formal understanding between a country and an international carbon certification standard such as Verra or Gold Standard. In practice, it allows the state to officially recognize credits certified under these standards, while requiring projects to be registered on the national platform. It is therefore both a cooperation and oversight tool—facilitating international credit trade while maintaining the host country’s regulatory sovereignty.
In 2025, Indonesia signed several MRAs—first with Gold Standard in May, then with Verra in October. These agreements mark a paradigm shift: Indonesia is choosing regulated cooperation over administrative isolation.
Lifting of the Indonesian moratorium: a turning point for the carbon market
October 2025: A Decisive Step Forward
On October 10, 2025, a new presidential regulation revoked the 2021 decree and once again authorized international sales of carbon credits. The new regulation officially opens the Indonesian market to the voluntary sector, recognizes international standards, and—most notably—allows for optional use of Corresponding Adjustments depending on project type. Corresponding Adjustments (CAs) are an accounting mechanism stemming from Article 6 of the Paris Agreement. They aim to prevent double counting of emission reductions: when a country exports a carbon credit, it must subtract that reduction from its own climate commitments, ensuring that the same credit is not counted twice (once by the seller country and once by the buyer). By allowing optional CAs, Indonesia now enables both state-to-state and private-sector transactions—offering flexibility while remaining aligned with international transparency principles.
Ahead of COP30, further guidelines are expected, particularly regarding the Verra agreement. By October 2026, additional regulations will define fiscal regimes, buffer mechanisms, and other technical parameters.
A thriving market and a strong signal to investors
The reopening of Indonesia’s carbon market has generated strong international enthusiasm. Investors view this as a sign of regulatory maturity and a strategic opportunity: a major forested country, rich in biodiversity, is opening to global cooperation while establishing strong safeguards.
For Indonesia, the stakes are twofold: attracting the international financing needed to meet its climate goals, while ensuring equitable benefit-sharing with local communities and ecosystems.
For actors in the voluntary reforestation market, this evolution opens new horizons. Project developers can now pursue hybrid approaches—combining international certification with local transparency and monitoring requirements.
Buyers, in turn, benefit from improved traceability and stronger regulatory security—two essential pillars for market credibility.
Indonesia today exemplifies a broader global trend: that of Global South countries reclaiming ownership of their natural resources while actively engaging in international carbon markets. This strategy of “sovereign openness” could inspire other forest nations ahead of COP30 and help redefine the long-term rules of the global carbon market. Reforest’Action offers a high-integrity carbon project on the island of Sumba, Indonesia, adaptable to multiple investment models to best align with your climate strategy. Discover the project’s full added value by contacting one of our experts.