Govt opens carbon trade to foreign business

The government has decided to allow foreign entities to purchase credits in the Indonesian carbon market, paving the way for multinational companies and institutions to tap into the country’s large carbon potential.

Businesses involved in carbon-trading schemes lauded the decision, adding that it was aligned with the 2016 Paris Agreement on climate change. However, environmental analysts fear that the trade will not result in any real environmental improvement.

The announcement came after Investment Minister Bahlil Lahadalia said on Wednesday that the Indonesian carbon market would be “open”, following a meeting with President Joko “Jokowi” Widodo in the State Palace prior to the press conference.

Learn more: The Jakarta Post