Indonesia aims to cut carbon emissions by 2030 and achieve net zero by 2060, requiring proactive efforts from both institutions and individuals to build a climate-conscious society.
Launched in 2023, the Indonesia Carbon Exchange (IDXCarbon) facilitates carbon credit trading, striking a balance between innovation and market participation to contribute to the country’s sustainability goals.
Since its launch, IDXCarbon has been positively received, as shown by its growth.
“At the time (2023), we just had 16 participants, and now we have 110. We also only had three projects listed, and now we’ve doubled to seven projects and expect to list more,” said Iman Rachman, CEO of IDXCarbon and president director of the Indonesia Stock Exchange (IDX).
The exchange’s two-year growth is significant, and it’s positioned for further expansion with its recent opening to the international market. “This year we can now do international carbon trading and have foreign buyers. This is a milestone for us,” Rachman said.
In contributing to Indonesia’s sustainability initiatives, IDXCarbon leverages its unique platform.
“Our competitive edge is that we are part of the IDX, and we have a captive market of 951 companies with investors who are pushing toward companies pursuing environmental, social and governance initiatives,” Rachman said. The exchange also provides companies with a chance to offset their emissions by becoming carbon buyers.
IDXCarbon aims to be more than just a marketplace: It seeks to become a key institution for funding green projects, with Japan as a potential partner.
“We are hoping to meet Japanese companies to raise funding for green projects,” Rachman said.
Japanese companies in Indonesia can also become buyers within the exchange.
“They can be both suppliers of projects and buyers of carbon credits, benefiting IDXCarbon and helping the Indonesian government reach its net-zero target.”
On a solid growth trajectory, IDXCarbon is embracing more opportunities to grow and innovate.
“We really accept any assistance — whether in funding, technology or collaboration,” he said. “We are very happy to exchange information and knowledge to strengthen our market in the region.”
With ongoing partnerships, including with the Tokyo Stock Exchange, IDXCarbon is positioning itself as a key player in the global carbon market.
