Environment Minister Signals Red and White Village Cooperatives Could Join Carbon Trading

Environment Minister Muhammad Jumhur Hidayat has said that Koperasi Desa Merah Putih (KDMP) village cooperatives have the potential to participate in carbon trading.

“Yes, absolutely possible (for KDMP to join carbon trading), if they genuinely carry out an environmental recovery process, there is appreciation from the carbon market. Very possible (to be involved),” Jumhur said when met in Jakarta on Wednesday.

He added that cooperatives in general could also take part in this business so that the economic benefits of carbon trading are more widely enjoyed by the public.

Jumhur said this idea emerged following Indonesia’s significant potential as a supplier of environmental services, particularly from forest and mangrove areas capable of absorbing carbon emissions.

He explained that cooperatives could become managers of carbon units through schemes for utilising forest or mangrove areas.

The cooperatives would then register the carbon units with the National Registry System (SRN) before eventually trading them on the carbon market.

“So they (the cooperatives) manage and restore the environment in their area, and later it can be offset in carbon trading. Then it is registered in the SRN PPI (National Registry System for Climate Change Control),” Jumhur said.

He said the scheme is expected to ensure that the economic benefits of carbon trading return to the community, especially those living in rural areas and around forests.

According to him, carbon units managed by cooperatives can be registered with the Carbon Unit Registry System (SRUK) before being traded on the carbon market, so that cooperatives and their members obtain direct economic benefits.

Previously, the government launched 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.

In addition, SRUK is also designed to be connected with the Indonesia Carbon Exchange (IDX Carbon) and international carbon registry systems.