Four Carbon Projects Begin Trading, Social Forestry to Reap Benefits

Forestry Minister Raja Juli Antoni has announced that the government has begun operating carbon trading from the forestry sector by granting permits to four carbon projects, consisting of three holders of Forest Utilisation Business Permits (PBPH) and one social forestry project. According to Raja Juli, this step marks an important milestone after the government launched the National Carbon Unit Registry (SRUK) as part of the implementation of national carbon trading. He stated that the process leading to the launch of the SRUK required a long time and involved cross-ministerial and institutional coordination. “Today is a very important moment in the history of the Republic of Indonesia, namely that we can finally launch the SRUK,” Raja Juli said on Thursday. He revealed that the carbon trading permits for the four projects were issued a few days before the SRUK launch, meaning that carbon trading activities from the forestry sector have already begun. Raja Juli emphasised that the government wants to ensure the benefits of carbon trading are not only enjoyed by large corporations but also by the communities that manage the forests. According to him, the scheme will open up economic opportunities for approximately 8.3 million hectares of social forestry areas and around 1.4 million hectares of customary forests. “Carbon trading is not just for the elite, not just for those who are already wealthy, but also for communities at the grassroots level,” he said. He assessed that communities who have been protecting forest areas deserve to receive economic incentives through the carbon trading mechanism because they have contributed to emission absorption and environmental preservation. Raja Juli also expressed his appreciation to the ranks of the Ministry of Forestry involved in drafting regulations and preparing for the launch of the SRUK. He stated that this success was inseparable from the President’s support and cross-ministerial cooperation in resolving various regulations that previously hindered the implementation of carbon trading. He hopes that carbon trading can become a new source of financing for forest conservation while improving the welfare of communities living around forest areas.