Bappenas Prepares Three Biodiversity Credit Pilot Projects
The Ministry of National Development Planning/National Development Planning Agency (PPN/Bappenas) is promoting the development of biodiversity credit as a new financing source for biodiversity conservation. This comes amid a significant funding gap for ecosystem protection that current budgets cannot meet.
According to the Biodiversity Expenditure Review, Indonesia’s biodiversity management funding needs range from Rp118.5 trillion to Rp163.8 trillion annually. Current financing capacity stands at approximately Rp21.6 trillion per year, leaving a funding gap of 82% to 87%.
Leonardo A.A. Teguh Sambodo, Deputy for Food, Natural Resources, and Environment at PPN/Bappenas, stated that biodiversity credit is being developed as an innovative financing instrument to support conservation and strengthen sustainable development funding.
“To address this challenge, PPN/Bappenas is promoting the development of biodiversity credit as an innovative financing instrument that can strengthen biodiversity conservation and support development funding,” Teguh said during the Biodiversity Credit Policy Dialogue: Indonesia–Australia, cited on Saturday, 30 May 2026.
Teguh said biodiversity is a strategic asset crucial not only for environmental sustainability but also for food security and the development of green and blue economies.
The development of biodiversity credit forms part of implementing the National Medium-Term Development Plan (RPJMN) 2025-2029 and Indonesia Biodiversity Strategy and Action Plan (IBSAP) 2025-2045. The scheme encourages private sector involvement through market-based instruments, blended finance, and government-business partnerships.
Biodiversity credit represents measurable, verified, and scientifically grounded positive outcomes for biodiversity. The scheme is designed to deliver additional conservation benefits beyond standard business practices.
There are three main types of biodiversity credit: uplift through active ecological restoration, conserve to maintain intact ecosystems, and avoided loss focusing on preventing biodiversity decline.
Currently, Bappenas, along with several ministries and agencies with UNDP Biodiversity Finance Initiative (BIOFIN) support, is preparing three pilot projects and drafting a biodiversity credit white paper to form the basis for credible and sustainable market development policy recommendations.
Environment Ministry’s Strategic Advisor for Biodiversity and Socio-Cultural Sustainability, Noer Adi Wardojo, stressed the importance of integrity in developing the instrument. He said biodiversity credit must be built on strong governance, inclusive stakeholder engagement, and pilot projects that can be practically tested.
“The development of biodiversity credit in Indonesia must be underpinned by high integrity, inclusive stakeholder involvement, and a robust governance framework to ensure the instrument delivers tangible impacts on biodiversity,” Noer said.
At the forum, the Australian government shared its experience in developing the Nature Repair Market, a science-based and transparent biodiversity credit trading instrument. The scheme operates alongside Australia’s carbon market through the Australian Carbon Credit Unit Scheme (ACCU).
Through Indonesia-Australia cooperation, the government hopes biodiversity credit development will strengthen conservation financing, support IBSAP 2025-2045 targets, and aid in achieving the Kunming-Montreal Global Biodiversity Framework (KMGBF) and Paris Agreement goals.