Indonesia Eyes U.S. Market for Carbon Credits and Critical Minerals Amid Paris Agreement Uncertainty
Main Takeaways
|
JAKARTA, investortrust.id – Despite signs of disengagement at the federal level, the United States has not fully withdrawn from the Paris Agreement, offering Indonesia strategic openings to increase exports of carbon credits and critical minerals vital to the global clean energy transition.
The signal emerged during the Bloomberg New Energy Forum (NEF) Summit 2025 in New York, which was attended by Chair of the Indonesian Chamber of Commerce and Industry Anindya Novyan Bakrie and Indonesian Presidential Envoy for Climate and Energy Hashim Sujono Djojohadikusumo. The summit, held from Tuesday to Wednesday, April 29–30, brought together global energy and climate leaders.
“This forum emphasized energy transition, climate, and environmental issues. Despite President Trump’s stance on the Paris Agreement, two-thirds of U.S. states, including major oil producers like Texas, remain committed to its goals and are actively transitioning to wind and solar power,” Anindya said in a press conference on Friday, May 9, in Jakarta.
He added that many American stakeholders were keen to explore investment opportunities in Indonesia, particularly in critical minerals, renewable energy, and carbon capture.
During the trip, the Indonesian delegation promoted the country as a potential global hub for decarbonization. With its expansive tropical forests and growing renewable energy sector, Indonesia has emerged as a key supplier of carbon credits derived from conservation, reforestation, and sustainable land management initiatives.
One such program is Reducing Emissions from Deforestation and Forest Degradation, or REDD+, which rewards countries like Indonesia for preserving forests and preventing carbon emissions.
“Indonesia is also preserving biodiversity which, in the long run, supports carbon sequestration and the development of a global carbon market,” said Anindya.
Indonesia is now actively marketing carbon credits to U.S. buyers through the Indonesia Carbon Exchange (IDX Carbon), which has begun offering verified carbon credit certificates to global participants. This is part of Indonesia’s effort to contribute to global net-zero emissions while monetizing its natural assets.
“Our very survival depends on climate resilience. As an archipelagic nation, rising sea levels threaten our existence. That’s why climate, energy transition, and the environment are not just policy—these are life-and-death issues for Indonesia,” Anindya emphasized.
The delegation also highlighted the country’s vast reserves of critical minerals such as nickel, copper, zinc, bauxite, and gold, essential components in clean energy technologies.
The United States, in particular, seeks reliable partners for sourcing raw materials used in electric vehicles and energy infrastructure. U.S. businesses expressed interest in importing these minerals and even proposed building refining facilities directly in Indonesia to align with the country’s downstream processing mandate.
Indonesia’s state electricity utility, PLN, has also committed to installing 103 gigawatts of power over the next 15 years—75 percent of which will be sourced from renewables. This provides a competitive advantage for processing critical minerals using low-emission energy.
Critical minerals—such as nickel, cobalt, and lithium—are crucial for battery manufacturing, while copper remains indispensable for electrical grids and renewable energy systems. Anindya reiterated that while Indonesia welcomes foreign investment, it will continue to require value-added processing to be done domestically to maximize national benefit.