On 20 January 2025, Indonesia marked a significant milestone in its sustainability journey by opening its carbon credit market to international buyers for the first time. Indonesia’s carbon trading platform, Indonesia Carbon Exchange (IDXCarbon), was launched in September 2023. This international carbon trading market aligns with the country’s commitment to the Paris Agreement and its Nationally Determined Contributions (NDCs), which aim to reduce greenhouse gas emissions by up to 43.2% by 2030. By embracing carbon trading, Indonesia is unlocking a significant potential to combat climate change and promote sustainable development.
How Indonesia’s Carbon Market Works
IDXCarbon facilitates the trading of carbon credits, enabling companies with surplus emissions allowances to sell to those that require them. The exchange ensures transparency, efficiency, and compliance with international carbon trading standards. Carbon trading can take place in two forms: emissions trading systems (ETS), which cap and trade emission allowances, and voluntary carbon markets (VCM), where businesses purchase carbon offsets for emissions they cannot reduce internally.
As of 2023, IDXCarbon has already listed over 2.9 million tons of carbon credits from projects like renewable energy, energy efficiency, and reforestation, with participants ranging from state-owned enterprises to private sector players. This positions Indonesia as a regional leader in carbon trading.
Why Carbon Trading Matters
Carbon trading offers an economic mechanism to incentivise emission reductions. By assigning a value to carbon emissions, businesses are encouraged to adopt cleaner technologies and invest in green projects. It also provides funding for renewable energy and forest conservation initiatives, which are crucial for Indonesia’s biodiversity and global climate goals.
For companies, participating in the carbon market is not just about compliance; it’s also a reputational advantage. Organisations can showcase their commitment to sustainability while accessing new revenue streams from surplus allowances.
OXO’s View on Indonesia’s Carbon Exchange
At OXO Living, we strongly support the launch of IDXCarbon and the opening of Indonesia’s carbon credit market to international buyers as it resonates with our commitment to sustainability and reducing environmental impact. As an organisation that integrates eco-friendly practices across our operations, this initiative is a critical step for Indonesia and businesses aiming to achieve net-zero emissions.
Ananda Putra, OXO Sustainability Manager, shared his perspective:
“This is a monumental opportunity for companies like OXO Living to actively contribute to climate action. By adopting carbon trading, we not only align with national and global sustainability goals but also ensure that every step we take leaves a smaller carbon footprint.”
At OXO, we’ve implemented renewable energy systems, waste management programs, and energy-efficient solutions across all properties we manage. The carbon exchange provides an additional platform to offset any remaining emissions, further solidifying our role as a leader in sustainable real estate.
Building a Greener Future Together
The launch of Indonesia’s carbon market, and the opening of international carbon credit trading marks the turning point for the country’s environmental and economic landscape. It fosters collaboration between businesses, governments, and communities to address the pressing issue of climate change.
As we work together to tackle this global challenge, OXO Living remains committed to sustainable practices and supporting initiatives like IDXCarbon that help us #BuildTomorrowToday. Let’s embrace this opportunity to drive meaningful change for the planet and future generations.
