New Players in the Carbon Market

Carbon credit companies are believed to be affiliated with conglomerates, including TOBA, Adaro, APRIL Group, and the Arsari Group.

Hundreds of logs, mostly meranti (shorea) and other hardwood species, lay in piles along the logging road operated by Austral Byna in North Barito Regency, Central Kalimantan, on Tuesday, May 6, 2025. On each log, there are two stickers recording the log number and the timber legality assurance system (SVLK) mark. "That pile is about 2,000 cubic meters," Sukardi said from his field a few kilometers from the site.

Sukardi, who chairs the Village Consultative Council (BPD) of Siwau in Gunung Timang subdistrict, was working on customary land located inside the forest zone, right in the area designated for Austral Byna's carbon trading project. According to him, the company has been selectively logging trees between villages since last year. Thousands of logs have been felled and transported by truck to the company's office in Teweh Baru subdistrict.

Since childhood, Sukardi has been familiar with the name Austral Byna, the oldest timber company in North Barito. Founded in 1957, it began operating in November 1989 under a concession spanning 294,600 hectares across dozens of villages in the subdistricts of Gunung Timang, Teweh Timur, Gunung Purei, and Teweh Baru. Today, the company produces an average of 9,121 cubic meters of timber and operates under a renewed concession of 255,569 hectares.

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In July 2024, Austral Byna announced a public consultation on high conservation value (HCV) areas. It invited several local subdistrict heads to the office of the Regional Development Planning and Research Agency of North Barito. Representatives from Austral Byna presented plans to map HCV areas within its concession.

The company's intention to enter the carbon trading market became increasingly clear within circles of the Forestry and Environment Ministries. Majority-owned by Rennier Abdul Rachman Latief—convicted in the Asabri corruption scandal—through Limas Surya Makmur, Austral Byna has been included in several government discussions about launching the carbon trade.

Tempo visited Austral Byna's office in Sikui village, Teweh Baru subdistrict, in early May to deliver an interview request letter. A follow-up request was also sent by email. As of this article's publication, the company had not responded.

Austral Byna was also present at a meeting convened by the Deputy for Climate Change Mitigation and Carbon Economic Value Management of the Environment Ministry at The Alana Hotel in Sentul City, Bogor, West Java, on April 9, 2025. Tempo obtained a copy of the invitation signed by Hari Wibowo, Director of Greenhouse Gas Inventory and Monitoring, Reporting, and Verification. At least 50 companies and climate experts attended the meeting.

Austral Byna's carbon trading plans are difficult to trace on the National Registry System (SRN) website. SRN is the official platform for recording climate change mitigation and adaptation efforts toward achieving Indonesia's Nationally Determined Contributions (NDC). However, the company's name appears on the Verified Carbon Standard (Verra Carbon) website, an international body that validates and verifies carbon market projects.

The company's project, called the Muara Teweh Conservation Project, aims for 171,700 hectares. According to the project design document (PDD) uploaded to Verra Carbon's site in 2024, it is projected to store 30.27 million metric tons of carbon dioxide equivalent (CO2e), starting January 1, 2025, over a 39-year period. The same document lists Fairatmos International Pte Ltd as the project proponent.

Fairatmos is a climate-tech startup founded in 2022 by Dyota M. Marsudi-son of former Foreign Minister Retno Marsudi-and his wife, Natalia Rialucky Marsudi. In December 2022, the company raised US$4.5 million (about Rp74 billion) in funding from a consortium led by Go-Ventures and Kreasi Terbarukan TBS, a subsidiary of publicly listed TBS Energi Utama (TOBA).

TOBA is widely known as the family business of National Economic Council Chair Luhut Binsar Pandjaitan. Through Toba Sejahtra, Luhut once held a majority stake in TOBA, formerly known as Toba Bara Sejahtra. In 2016, Toba Sejahtra sold 61.79 percent of TOBA to Highland Strategic Holding Pte Ltd. According to records from the Ministry of Justice and Human Rights, Luhut remains a beneficial owner of Toba Sejahtra.

Natalia Rialucky Marsudi, co-founder and Chief Executive Officer (CEO) of Fairatmos, confirmed that Austral Byna is a carbon trading partner. Fairatmos serves as a consultant to ensure the company's carbon credit project is implemented effectively. "Our responsibility is to ensure the project meets certification standards according to established methodologies," Rialucky wrote to Tempo on Wednesday, May 28, 2025.

As for Fairatmos' ties with TOBA, Rialucky explained that the public company is merely a minority shareholder in her startup. She did not disclose the size of TOBA's investment but emphasized that the funding significantly helped Fairatmos contribute to building Indonesia's carbon market.

Tempo also sought clarification from Pandu Patria Sjahrir, who at the time was a director at TOBA and has since resigned after being appointed Chief Investment Officer of the newly established Investment Management Body Daya Anagata Nusantara (Danantara). Pandu directed Tempo to Ratri Wuryandari, Senior Vice President of Corporate Communication at TOBA.

Ratri confirmed that TOBA's investment was made through its subsidiary, Kreasi Terbarukan TBS, with a minority shareholding. The decision was based on Fairatmos's role as a carbon technology service provider that supports project developers in data gathering and document preparation. Ratri also noted that Luhut's shareholding in TOBA through Toba Sejahtra now amounts to just 8.60 percent. "It's minority and passive," she wrote.

President Prabowo Subianto reportedly has grand ambitions to revive Indonesia's carbon trade on the international stage. The effort began when he appointed his brother, Hashim Djojohadikusumo, as Special Presidential Envoy for Climate and Energy to the UN Climate Change Conference (COP29) in Baku, Azerbaijan, in November 2024. Prabowo is also aiming to rake in up to US$65 billion from carbon credit projects expected to enter global markets by 2028.

In several public appearances, Hashim has highlighted Indonesia's vast potential in carbon trading, claiming that as much as 557 million tons of CO2 equivalent have already been verified and are ready for trade. "Indonesia has a surplus, especially in forestry, which domestic players can't fully tap into. So the Forestry Minister and Environment Minister recommended to the President that carbon trading be opened to international players," Hashim said on January 31, 2025.

Environment Minister Hanif Faisol Nurofiq confirmed that Hashim has been personally involved in overseeing the opening of the voluntary carbon market for the forestry sector. Hashim has enlisted former World Bank Managing Director Mari Elka Pangestu to help design the trading mechanism. "We agreed to accommodate the voluntary carbon market through a mutual recognition agreement (MRA)," Hanif told Tempo on April 16, 2025.

The MRA between verification and validation agencies (LVVs) and the government is expected to be finalized by the end of May. Meanwhile, the Environment Ministry is preparing new regulations for the voluntary market by revising the Presidential Regulation on Carbon Economic Value Implementation. An additional clause will be inserted to recognize the entry of international standards such as Verra Carbon, Gold Standard, Plan Vivo, and the Architecture for REDD+ Transactions (ART).

Besides opening the market to global players, Hanif is also coordinating with companies poised to participate in carbon trading. He described this as a consulting and mentoring service designed to speed up carbon credit certification for each concession area. “Verra Carbon and others have quietly begun certification. Once the MRA is signed, the process will move quickly," Hanif added.

According to internal government documents reviewed by Tempo, the Forestry Ministry also plays a key role in facilitating the carbon trading program. One document outlines eight corporate consortiums set to begin carbon trading within the next six months. They are expected to launch in June following MRA finalization and registration with Verra Carbon.

One of these is the Austral Byna project. Others include the Mayas Project, Riau Ecosystem Restoration (RER) Carbon Project, OKI REDD+ Project, Kubu Peatland Project, Seram Climate and Conservation (Sercova), PLUM Peat and Mangrove Conservation and Restoration Project, and the South Barito Kapuas Project.

Several of the consortiums are affiliated with major corporate groups or conglomerates. The RER Carbon Project, for instance, is linked to the APRIL Group through subsidiaries Global Alam Nusantara, The Best One Unitimber, Gemilang Cipta Nusantara, and Sinar Mutiara Nusantara. The project spans a concession area of 130,090 hectares.

APRIL Group's Head of Communications, Anita Bernadus, explained that the RER Carbon Project represents the corporation's contribution to the government's emission reduction goals under its Enhanced NDC. "Since 2015, we've followed a 1-for-1 commitment, where we conserve one hectare of natural forest for every hectare of industrial plantation forest we manage," Anita wrote.

Beyond the initial eight projects, the government is pushing for one or two additional consortiums to begin trading as early as June. One is Wana Sejahtera Abadi, a company owned by the Melchor Group operating in the Aru Islands, Maluku. Since 2023, the Melchor consortium has proposed that at least seven companies be granted concessions covering 809,670 hectares.

Over the past two weeks, Tempo has tried to reach Melchor Group founder Peter F. Gontha to discuss the group's involvement in the carbon trade. He has yet to respond. Formal letters were also sent to CEO Dedra Arsyad and General Affairs and Human Resources Director Prasetiyo Firmansyah. As of publication, none had replied.

Several carbon business actors told Tempo that the government is preparing more than 50 companies—including business groups—for entry into the carbon trade in three waves. The first wave includes eight consortiums, followed by 17 companies in the first year, and a third wave of at least 35 companies from the second year onward.

Most of these businesses are tied to major corporate players, such as Alam Sukses Lestari (ASL) and Hutan Amanah Lestari (HAL), which are affiliated with the Adaro Group. Notably, a subsidiary of Arsari Group, owned by Hashim Djojohadikusumo—ITCI Kartika Utama—has surfaced as a participant. Through its subsidiary ITCI Kayan Hutani, the company plans to engage in carbon trading within its concession area in Bulungan Regency, North Kalimantan.

Ray Aryaputra, Corporate Secretary of Adaro Andalan Indonesia, explained that ASL and HAL hold Forest Utilization Business Licenses (PBPH) as part of Adaro's subsidiaries. However, neither company has yet started trading carbon credits. "ASL is still finalizing its Climate Change Mitigation Action Plan," he said. "There's no special treatment from the government. The PBPH areas are state-owned forests, so no land rights are transferred to the companies."

Tempo also sought comment from Ariseno Ridhwan, Vice President of Corporate Communications for Arsari Group, who responded only with a brief thank you, offering no further details. Efforts to reach Hashim Djojohadikusumo's son, Aryo Puspito Setiaki Djojohadikusumo, and Arsari Group's Public Affairs Head Nicholay Aprilindo were also unsuccessful.

The government is accelerating the launch of the carbon trading market with a revenue target of at least Rp19 trillion (around US$1.1 billion) in the first year. In pursuit of this goal, it has held regular meetings with business players since early this year. These large corporations were invited to meet in Sentul City and several Jakarta hotels to receive guidance on drafting PDDs and registering with Verra Carbon or the SRN.

Riza Suarga, General Chair of the Indonesia Carbon Trade Association, confirmed that dozens of companies attended the meeting in Sentul City. According to Riza, the government used the meeting to educate project holders on carbon trading procedures as part of its market preparation efforts. "There's still a perception gap, as if the carbon business is already super profitable only by sitting quietly while guarding the forest," Riza said on April 17, 2025.

In reality, Riza noted, carbon trading through forest protection and restoration is a costly endeavor. For example, companies are obligated to build community development programs to raise awareness about forest conservation. "If local communities continue encroaching on forests, the project will be deemed a failure, and the carbon credits won't be recognized on the international market."

Despite the government's plans to open the carbon trading floodgates, lingering concerns about national sovereignty remain. Officials worry that entities like Verra Carbon or Gold Standard may attempt to dictate the terms of forest restoration. "They should not be dictating terms, because corporate permits are already governed by government regulations," said Environment Minister Hanif Faisol Nurofiq.

Concern over sovereignty first came to light when then-Environment and Forestry Minister Siti Nurbaya imposed a moratorium on the voluntary carbon market in 2021. At the time, Siti suspended all carbon certificate trading by concession holders. Several ecosystem restoration permits were even revoked amid accusations of double-counting or claiming credits beyond designated areas.

Hanif explained that the earlier policy reflected the government's focus on the compliance market, not the voluntary one. The rationale was a firm commitment to achieving NDC targets under the United Nations Framework Convention on Climate Change (UNFCCC), along with pressure to raise ambition. More recently, the government has turned back to the voluntary market due to sluggish demand in the compliance market.

A carbon consultant, who asked not to be named, voiced concern that the carbon trading push might be a passing hype. This, the consultant said, is evident in the slow progress some companies are making in preparing their PDDs, particularly firms suspected of ties to major emitters. "With so many extractive corporations entering the carbon market, I'm worried this will cause problems during assessment in the LVV process."

Minister Hanif declined to comment on the emergence of large corporations in the carbon business. He maintained that the government's focus is to encourage companies to register their trades in the SRN and to draft Climate Change Mitigation Action Plan Documents. All trades, he stressed, must be conducted domestically. "We collect a modest non-tax state revenue from each transaction, which will be reinvested to enhance national carbon absorption."

Additional reporting by Avit Hidayat and Gamaliel M. Kaliel.