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Carbon trading in Indonesia was still ongoing.
Indonesia's carbon trading market is still relatively small, but Elen said that, based on the RPP, the Carbon Tax Roadmap
the government sees it as key to the country’s aim of cutting is proposed initially to only regulate application of the tax for
carbon emissions by 43.2 percent by 2030. power generation sub-sectors or in this case, steam power

Elen Setiadi, Deputy for Business Development and State- plants (PLTU).
Owned Enterprises Innovation at the Coordinating Ministry for In the second stage, it will extend to fossil fuels used in
Economic Affairs, reported that Indonesia's carbon trading the transportation sector.
market has reached a transaction value of Rp 36.7 billion
(US$2.26 million) since its launch in September 2023, to Over 1 million ha. social forestry concessions for
June 2024. communities
The trading volume amounted to 608,000 tonnes of carbon The Indonesian government has set a target of 12.7 million
dioxide (CO2) equivalent. hectares of land being allocated for community forest
The global market for CO2 permits reached a record management access.

881 billion euros (US$948.75 billion) in 2023, marking a two To date, 1.07 million hectares has been allocated for this
percent increase from the previous year, according to analysts purpose under the Social Forestry Decree (SK), and a further
at the London Stock Exchange Group (LSEG) in February. 43,000 hectares as Agrarian Reform Objective Land (TORA).
The EU's emissions trading system (ETS) was worth around Additional lands are being allocated under the decree
€770 billion (US$829 billion), representing 87 percent of the for people's oil palm land, and through environmental fund
global total. The North American markets were valued at a service certificates for the community.
combined €71.4 billion (US$76.9 billion), and the Chinese During the LIKE 2 Festival in Jakarta, Minister of Environment

market at €2.3 billion (US$2.5 billion). and Forestry, Siti Nurbaya, announced an additional Social
"Carbon trading is expected to be a vital instrument Forestry Decree for customary forests covering 15,879
in reducing greenhouse gas emissions and achieving hectares and a decree for rejuvenation of people’s oil palm
decarbonization targets," said Elen during Carbon Trading land covering 37,000 hectares.
and Market in Indonesia 2024 webinar in Jakarta recently. "With the submission of the Social Forestry Decree, the
In the first half of 2024, Indonesia recorded a carbon realisation of social forestry has now reached 8.018 million
transaction value of Rp 5.9 billion (US$0.37 million) with a hectares for 1.4 million Heads of Families (KK),” stated Siti
trading volume of 114,500 tonnes of CO2 equivalent. Nurbaya.

Carbon tax rules prepared
Coordinating Minister for Economic Affairs, Airlangga Hartarto, © 2018 Børth Aadne Sætrenes
revealed that rules for a carbon tax have been prepared.
However, Airlangga has not been able to confirm when the
tax will be implemented.
Previously, Deputy for BUMN Business Development,
Research and Innovation of the Coordinating Ministry for the

Economy, Elen Setiadi, said that the discussion of the Draft
Government Regulation (RPP) on the Carbon Tax Roadmap