Indonesia could harvest about US$15 billion (Rp 150 trillion) of financial incentives per year from carbon trading through avoiding forest emissions, a climate expert said.
Climate researcher from the centre for International Forestry Research (Cifor) Daniel Murdiyarso said that the implementation of reducing emission from deforestation and forest degradation (REDD) scheme would give double benefits to Indonesia of financial incentives and curbing long standing illegal logging.
"If Indonesia can manage only a fifth of its forest's emissions, the country could get benefit of $3 billion per year with the carbon price of $5 per ton," he told international forest conference in Bali on Friday.
Currently, a ton of carbon was priced between $5 and $10.
Daniel, who is also an expert member of the Intergovernmental Panel on Climate Change (IPCC), said that Indonesia forest had emitted about three billion tons per year, mostly from peat land area.
Indonesia is the world's third largest forest country with 120 million hectares.The REDD was adopted in Bali climate change conference in 2007 as an alternative scheme in reducing greenhouse gas emission in dealing with the climate change. Forest contributes about 20 percent of global greenhouse gas emissions.