Environment Minister: Cooperatives Can Manage Carbon Units to Benefit Communities

Indonesia’s Environment Minister, Mohammad Jumhur Hidayat, has stated that cooperatives have the opportunity to become managers of carbon units in carbon trading, ensuring that the economic benefits of Indonesia’s carbon potential can be enjoyed by the public.

Speaking at the Great Institute seminar in Jakarta on Tuesday, Jumhur said Indonesia has significant potential in carbon trading and the government wants to ensure the greatest profits from this market are felt by the people. “Going forward, there is a carbon market and Indonesia has huge potential. We want to ensure that in this carbon market, the greatest benefits must be enjoyed by the people,” he said.

According to him, cooperatives will become part of the development of a circular economy and carbon trading so that the economic benefits can be felt more widely by the community. He explained that cooperatives can not only act as managers but also become owners of carbon units originating from mangrove and forest areas.

Jumhur said this scheme is expected to ensure that the economic benefits from carbon trading return to the community, especially those living in rural areas and around forests. He noted that carbon units managed by cooperatives can be registered with the SRUK before being traded on the carbon market, allowing cooperatives and their members to obtain direct economic benefits.

The government launched the Carbon Unit Registry System (SRUK) on 9 July 2026 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. The government stated that SRUK is designed to support transparent, credible, and high-integrity carbon trading while preventing double counting of emission reductions. Additionally, SRUK is designed to connect with the Indonesia Carbon Exchange (IDX Carbon) and international carbon registry systems.

“SRUK will be the main hub connecting various instruments and actors in the carbon economic value to ensure that the economic benefits of credible, high-integrity, and inclusive carbon value can be felt down to the grassroots level, in order to realise climate justice for all Indonesian people,” Jumhur said.