CPI: Forestry Minister's Role Central to Carbon Trading

Climate Policy Initiative (CPI) has emphasised that the role of Forestry Minister Raja Juli Antoni is central as the primary gatekeeper in the implementation of carbon trading in the national forestry sector. CPI Director Tiza Mafira stated in Jakarta on Wednesday that the ministry’s strategic position is necessary given that the current forest carbon trading mechanism operates through an official carbon offset scheme. “The minister’s role is central and crucial,” she said. She explained that the trading mechanism has been strictly regulated in Presidential Regulation Number 110/2025 and Forestry Ministerial Regulation Number 6/2026. Through the existence of the Carbon Unit Registry System, the Ministry of Forestry has full authority to carry out technical validation and supervise all carbon projects in the field. Tiza added that such strict oversight is important to prevent potential double counting of carbon units produced by project developers. By avoiding double counting, the credibility of these green commodities can be maintained, thereby increasing market confidence, both domestically and internationally. The level of global market confidence in carbon units produced by Indonesia will ultimately determine their economic value, including the opportunity to obtain premium prices in the world carbon market. “The future development of forestry carbon trading will also depend on market confidence. This will determine whether Indonesia’s forest carbon can command a premium price in the market,” she said.