Agriculture Ministry Pushes Carbon-Based Economic Transformation
Agriculture Ministry Pushes Carbon-Based Economic Transformation
15 Apr 2026 17:51 WIB
Voice of Indonesia
Key Points
The economic value of carbon supports low-emission farming and attracts sustainable green investment.
Agriculture sector is strategic in cutting emissions, targeting a 10 million-ton CO2 reduction by 2030.
RRI.CO.ID, Jakarta - The Ministry of Agriculture has begun promoting the implementation of the Economic Value of Carbon (NEK) to accelerate the transformation of the agricultural sector toward sustainability while opening opportunities for green investment.
NEK, or carbon pricing, assigns an economic value to greenhouse gas (GHG) emissions, allowing environmental impacts to be factored into economic activities. The agricultural sector is considered strategic due to its dual role as both an emitter and a carbon sink.
“Agriculture occupies a special role since it is both a source of emissions and a carbon sink. This sector can be crucial in controlling climate change and creating new economic prospects by using low-emission technology and environmentally friendly land management,” said Deputy Minister of Agriculture Sudaryono during a working meeting with Commission IV of the House of Representatives (DPR RI) in Jakarta on Tuesday, April 14, 2026, as quoted on the ministry’s official website.
NEK is expected to attract foreign investment, particularly through international carbon trading, while encouraging emission reductions. Investors will be able to purchase carbon credits from Indonesia to finance low-emission agricultural projects.
This initiative aligns with the 2050 Long-Term Strategy for Low Carbon and Climate Resilience (LTS-LCCR) and Indonesia’s Nationally Determined Contribution (NDC) targets.
The government aims to reduce agricultural emissions by 10 million tons of CO2 equivalent by 2030. Under the 2025–2029 National Medium-Term Development Plan (RPJMN), Indonesia also targets a 30.11 percent reduction in emissions by 2029 as part of its transition to a green economy and net zero emissions.
To strengthen NEK implementation, the government has issued Presidential Regulation No. 110/2025, which governs cross-sector carbon economy instruments, including agriculture, covering rice fields, livestock, and plantations.
Since 2019, the Ministry of Agriculture has introduced several emission-reduction initiatives, including peatland management, biogas development, organic fertilizer use, organic villages, low-emission rice varieties, and improved animal feed quality. These efforts have achieved an average annual reduction of 71.13 million tons of CO2 equivalent between 2019 and 2024.
Challenges remain, including difficulties in measuring emissions, limited data, land fragmentation, fluctuating carbon prices, and a shortage of skilled human resources. To address these, the government is preparing derivative regulations and strategic roadmaps, including a Net Zero Emissions roadmap for agriculture and detailed NEK implementation plans.
Going forward, the ministry will strengthen real-time, data-based measurement, reporting, and verification systems, enhance the capacity of farmers and extension workers, and promote economic incentive programs such as result-based payments and carbon pricing.
“NEK’s success depends on cross-sector synergy, institutional strength, and consistent policy support from Commission IV of the DPR RI. That is key for effective implementation and tangible benefits for farmers and national development,” Sudaryono said.
The government is optimistic that NEK implementation will help maintain food security while boosting Indonesia’s position in the global carbon market. ***
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