IBC's Papers on Carbon Market

Indonesia, with a growing US$1.3 trillion GDP, holds 80% of the world’s carbon sinks from its mangrove, peatland, and rainforest. Despite rising emissions in 2022, Indonesia aims to reduce GHG emissions by 31.89% unconditionally or 43.2% with international support by 2030, making carbon pricing and market mechanisms a significant prospect for financing its national sustainable development and competitiveness. However, comprehensive research diving into its systemic challenges remain limited. This whitepaper’s objective is to explain the most recent scientific, economic, innovation and governance challenges of the carbon market and recommend strategic actions needed to address such challenges. Insights and data were gathered through in-depth interviews and secondary data analysis. The analysis revealed that gaps remain in the carbon market’s knowledge management, entity-level emission caps, integrated carbon project registry system, financing incentives and sufficient private sector recognition. The 2023 launch of IDXCarbon showed ambitions to lead the carbon market, but this whitepaper suggests that Indonesia acts to address such challenges by operationalizing an acceleration team that strengthens development roadmap and updates its enabling regulations, as to build more champions in carbon market, especially from the private sector.

To support the leadership of President Prabowo Subianto and Vice President Gibran Rakabuming Raka, IBC proudly presents the white paper titled “15 Policy Package Recommendations to Support the Development Agenda of the President and Vice President of Indonesia 2024 – 2029.” This document maps out challenges across various focus areas and offers strategic policy package recommendations to support delivering 8 Asta Cita Missions, 8 Best Results Programs Fast, 17 Priority Programs, as well as other work programs.

The 15 policy package recommendations are based on the national management framework for a Competitive and Prosperous Indonesia. This framework consists of four main pillars: Economy, Human Resources, Governance, and Innovation, specifically formulated through 15 focus areas. These focus areas cover issues such as resource downstreaming, food estate, bureaucracy digitalization, and advanced technology production. Each policy package recommendation is designed in a modular fashion, allowing readers to select the parts most relevant to their interests and fields independently.