Article

At COP30 in Brazil, Indonesia aimed for US$960 million from 90 million tonnes of potential carbon credits but secured only US$2.75 million, revealing foundational issues in its carbon credit strategy. The gap between theoretical carbon markets and actual implementation includes unresolved disputes over integrity, quality, and compliance.

Independent analysts have deemed Indonesia's climate commitments 'critically insufficient,' raising doubts about the effectiveness of credits generated under weak baselines. Furthermore, indigenous communities are largely excluded from carbon finance, with their land rights unprotected.

While Indonesia has established a national carbon market framework, it lacks robust regulatory institutions and binding emissions limits. The country must enhance its Nationally Determined Contribution and prioritize stronger enforcement and social legitimacy in its carbon market to create credible climate outcomes.