Carbon Trading to Support Integrated Emission Reduction Ecosystem, Says Forestry Minister

Forestry Minister Raja Juli Antoni has said that carbon trading can support the creation of an integrated ecosystem for reducing greenhouse gas emissions.

“Going forward, we are working to create an integrated ecosystem for reducing GHG emissions with sustainable financing through carbon trading, and performance-based payments so that they can be used for broader activities/programmes by beneficiaries,” the minister said in Jakarta on Wednesday.

According to him, national carbon trading is now supported by various regulations and strategic instruments, one of which is the Carbon Unit Registry System as the foundation for developing the national carbon market.

The system is managed by the Ministry of Environment to record, manage and verify traded carbon units.

He stated that the registry system is designed to support transparent, credible and high-integrity carbon trading, while preventing double counting of emission reductions.

“So this will create a good carbon trading ecosystem,” said Raja Antoni.

In addition, the minister said another effort being pushed by the government to support the creation of an integrated ecosystem for emission reduction and the green economy is climate-based funding.

One source of funding managed by the Environmental Fund Management Agency comes from the donor institution Green Climate Fund through the Results-Based Payment scheme, as well as support from the Government of Norway through the Results-Based Contribution scheme.

In 2026, 10 proposals from 10 provinces have been assessed and are in the preparation stage for programme implementation, before a ceremonial signing of cooperation for the distribution of RBP funds to the 10 provinces is carried out.

Currently, 34 provinces have accessed RBP REDD+ GCF Output 2 funding, with a total commitment of Rp761 billion. This amount covers 94.8 percent of the total allocation for provinces.

“I think this is a very important matter, RBP that is based on performance,” said Forestry Minister Raja Antoni.

“Hopefully with various better, more robust schemes, in the future with these various schemes, we can build a system to protect our forests even better,” he added.