Indonesia and IETA Forge Partnership to Advance Carbon Markets and Capacity Building

The MoU establishes a framework for collaboration to support the design and implementation of an effective carbon market framework in Indonesia, strengthen private sector participation, and enhance Indonesia’s engagement with international carbon market stakeholders.

Under the agreement, IETA’s Business Partnership for Market Implementation (B-PMI) will support the Ministry of Forestry through regular capacity building sessions, workshops, and technical exchanges. These will focus on areas such as carbon market design, Article 6 of the Paris Agreement, NDC alignment, nesting of REDD+ projects, and linkages between compliance and voluntary markets. 

Dr. Mahfudz, the Secretary General of the Ministry of Forestry, highlighted: “Indonesia is advancing the development of our carbon markets to support the achievement of our NDC and Forestry and Other Land Use (FOLU) Net Sink 2030 target. Together with IETA and the support from B-PMI, we aim to unlock the opportunities of international carbon markets for developers and investors to advance green growth in Indonesia.”

Björn Fondén, IETA’s International Policy Manager and APAC Lead, expressed: “Indonesia plays a critical role in global decarbonisation efforts, including through nature-based solutions and deployment of renewables. We are excited to strengthen our partnership with the Ministry of Forestry to build capacity around international carbon markets and help ensure that Indonesia’s forests contribute effectively to global climate goals while attracting high-quality investments that benefit local communities and ecosystems.”

The MoU does not create legally binding obligations between the two Parties but outlines a shared commitment to enhance collaboration, promote policy dialogue, and joint activities to build integrity, confidence, and growth in Indonesia’s carbon markets. 

The partnership builds on IETA’s ongoing work in Indonesia through its B-PMI initiative, which since 2023 has hosted a series of dialogues, technical workshops, and policy papers in support of the country’s evolving carbon market architecture.

The signing marks a significant step toward strengthening public-private partnerships and international cooperation in support of Indonesia’s transition to a low-carbon economy.