Indonesian Political, Business & Finance News

Deputy Minister of Agriculture reaffirms commitment to strengthening sustainable implementation of Carbon Economic Value

| Source: ANTARA_ID Translated from Indonesian | Agriculture
Deputy Minister of Agriculture reaffirms commitment to strengthening sustainable implementation of Carbon Economic Value
Image: ANTARA_ID

Jakarta (ANTARA) - Deputy Minister of Agriculture Sudaryono has reaffirmed his commitment to strengthening the implementation of Carbon Economic Value (NEK) as part of the transformation towards low-emission and sustainable agriculture.

In his statement in Jakarta on Wednesday, Sudaryono said the agricultural sector plays a strategic role in NEK implementation, as it not only serves as a source of greenhouse gas (GHG) emissions but also acts as a carbon sink through sustainable cultivation practices.

“By applying low-emission technology and environmentally friendly land management, this sector can become key in controlling climate change while opening up new economic opportunities,” he stated.

The Deputy Minister added that the agricultural sector’s readiness for NEK implementation is also an important factor in attracting foreign investment, in line with the opening of international carbon trading.

Through this mechanism, global investors can purchase carbon credits from Indonesia, thereby opening up financing opportunities for low-carbon projects in the agricultural sector.

Furthermore, Sudaryono stated that these efforts are in line with Indonesia’s vision in the Long-Term Strategy for Low Carbon and Climate Resilience (LTS-LCCR) 2050 and commitments to reduce emissions through the Nationally Determined Contribution (NDC).

The government itself has targeted a reduction in agricultural sector emissions by 10 million tonnes of CO2 equivalent by 2030, as part of the national target.

In addition, the National Medium-Term Development Plan (RPJMN) 2025–2029 also emphasises the importance of integrating economic growth with food, energy, and water resilience, as well as transitioning to a green economy and Net Zero Emission with a target reduction of emissions by up to 30.11 per cent by 2029.

To accelerate NEK implementation, the government has issued Presidential Regulation (Perpres) No. 110 of 2025 on the organisation of cross-sectoral carbon economic instruments, including the agricultural sector covering sub-sectors of paddy fields, livestock, and plantations.

He added that the Ministry of Agriculture (Kementan) has been running various emission reduction programmes since 2019.

Some of them include biogas development, increasing soil carbon stocks through organic fertilisers, promoting organic villages, using low-emission rice varieties, improving livestock feed quality, balanced fertilisation, peatland management, and carbon sequestration in horticultural crops and plantations.

In addition, the government is finalising derivative regulations in the form of a Regulation of the Coordinating Minister for Food Affairs on the structure and working mechanisms of the NEK Steering Committee, as well as a Regulation of the Minister of Agriculture on the organisation of carbon economic instruments in the agricultural sector.

Kementan is also preparing various strategic roadmaps, including Net Zero Emission (NZE) for the agricultural sector, Enhanced NDC (ENDC), Second NDC (SNDC), and a roadmap for NEK implementation in the agricultural sector.

In its implementation, Kementan will strengthen the Measurement, Reporting, and Verification (MRV) system based on real-time data, develop low-emission farming practices, enhance the capacity of farmers and extension workers in carbon literacy, and promote economic incentive schemes such as carbon pricing and result-based payments.

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