Carbon trading has emerged as a critical instrument in the global fight to reduce greenhouse gas (GHG) emissions. In Indonesia, the launch of the Indonesia Carbon Exchange (IDXCarbon) presents new opportunities for companies to earn economic incentives by selling carbon credits. This mechanism enables entities that successfully reduce emissions to sell their surplus reductions to others that exceed their emission limits.
However, obtaining carbon credits is not instantaneous. Companies must navigate a series of structured administrative and technical stages, from project identification, national registration, audits, to trading on the exchange. This article outlines five strategic steps comprehensively, complete with practical guidance and regulatory references.
- Emission Reduction Project Identification
- Project Registration with SRN-PPI
- Validation and Verification by Accredited Institutions
- Registration and Activation on IDXCarbon
- Carbon Credit Trading
1. Emission Reduction Project Identification
Project identification serves as the primary foundation. Projects must meet the criterion of additionality yielding emission reductions beyond business-as-usual scenarios. Examples of eligible activities include:
a. Renewable Energy
For example, a rooftop solar power plant (PLTS) installation is a solar panel system installed on a building’s roof to generate electricity from sunlight. Another is biogas from agricultural waste, which utilizes organic waste such as livestock manure or straw to produce methane gas as an energy source. Another project is micro-hydro, a small-scale power plant that utilizes river flow without building large dams.
b. Energy Efficiency
This includes optimizing boilers for more fuel-efficient heating processes, equipment retrofitting, which involves replacing or modifying old components to make them more efficient and environmentally friendly, and smart energy management, which uses sensors and automated systems to monitor energy usage in real time.
c. Ecosystem Restoration
Projects such as mangrove planting to protect coastlines while sequestering carbon, and peatland forest rehabilitation to restore ecosystem functions capable of storing large amounts of carbon.
d. Waste Management
Examples include processing organic waste into compost or energy, and recycling plastic materials to reduce emissions from new plastic production and prevent environmental pollution.
Each option needs to be supported by baseline emissions data and reduction projections. For example, mangrove restoration in Kalimantan can absorb up to 500 tons of CO₂e per hectare per year compared to non-conservation areas.
2. Project Registration with SRN-PPI
Once the project concept is mature, the next step is registration with the National Registry System for Climate Change Control (SRN-PPI) under the Ministry of Environment and Forestry (KLHK). This system serves as the official repository of nationally recognized mitigation projects. General registration flow:
- Submit project description documents and emission calculation methodology.
- Attach emission baseline, reduction projections, and monitoring plans.
- Include environmental permits, location statements, and AMDAL (environmental impact analysis) if required.
- KLHK reviews document completeness before granting registered status
Major challenges often arise from data verification issues and lengthy review periods, initial projects may take 3–6 months.
3. Validation and Verification by Accredited Institutions
After SRN-PPI registration, companies must conduct audits through validation (ex-ante) and verification (ex-post) by accredited bodies, such as:
- IML Carbon
- PT Sucofindo
- TÜV Rheinland
- Mutuagung Lestari
- TÜV Nord
The process includes:
- Auditing methodology and baseline documentation.
- Inspecting monitoring data of activities.
- Field sampling to ensure implementation.
- Reviewing emissions reduction calculations.
Audit results are compiled into a Verification Report submitted to KLHK. If approved, companies receive a Greenhouse Gas Emission Reduction Certificate (SPE-GRK). Referenced standards include SNI ISO/IEC 17029:2019 and ISO 14064-1.
4. Registration and Activation on IDXCarbon
Source: Official Website IDXCarbon
With the SPE-GRK in hand, companies can proceed to IDXCarbon, the official carbon exchange under the Indonesia Stock Exchange, operating from September 2023. Service user registration involves:
- Completing the application form and notarized declaration letter.
- Uploading legal documents: company deed, statutes/bylaws, tax number, business license.
- Attaching audited financial reports and bank account details.
- Carbon trading training certificate from a recognized institution.
Once documents are verified, users receive dashboard access to upload their SPE-GRK and monitor carbon credit balances. Account activation typically takes 2–4 weeks depending on administrative completeness.
Read more:
Turning Emissions into Action Through IDXCarbon and National Carbon Trading
5. Carbon Credit Trading
At this stage, carbon credits become tradeable assets. IDXCarbon provides four transaction mechanisms:
| Mechanism | Description |
| Auction | Seller announces volume; buyers compete with highest bids |
| Regular | Stock-like trading, order books record buy/sell offers with prices and volumes |
| Negotiation | Bilateral agreement with flexible price and quantity terms |
| Marketplace | Open listings; buyers select projects by reputation and price |
Main buyers include carbon-intensive companies needing to meet emission limits and ESG-focused investors seeking green portfolios. In 2024, Indonesia’s carbon price ranged from IDR 69,900 to IDR 77,000 per ton CO₂e, influenced by project quality, location, and market demand.
These five strategic steps demonstrate the complex process of moving towards carbon trading. To ensure your project is ready for verification and meets international standards, consult with an expert now for design and documentation.
Author: Nadhif
Editor: Sabilla Reza Pangestika
References:
Otoritas Jasa Keuangan. (2023). SEOJK No. 12/SEOJK.04/2023 tentang Penyelenggaraan Perdagangan Karbon.
Kementerian Lingkungan Hidup dan Kehutanan. (2022). Permen LHK No. 21 Tahun 2022 Tentang Registrasi Nasional Pengendalian Perubahan Iklim.
Badan Standardisasi Nasional. (2019). SNI ISO/IEC 17029:2019 & ISO 14064-1:2018.
Presiden Republik Indonesia. (2021). Peraturan Presiden No. 98 Tahun 2021 tentang Strategi Nasional Pengendalian Perubahan Iklim.s
Bursa Efek Indonesia. (2023). Dokumen Peluncuran Bursa Karbon Indonesia (IDXCarbon).
Indonesia.go.id. . (2023). Cara Pendaftaran Pengguna Jasa Bursa Karbon.
Good News From Indonesia. (2023, November 9). Cara Daftar Bursa Karbon: Syarat Dokumen dan Langkah-Langkahnya.