Indonesia's carbon market offers climate opportunity: minister
“With proper management and collaboration, this carbon market potential can help Indonesia achieve its climate goals while supporting sustainable economic growth,” he said during a working meeting with the House of Representatives (DPR) in Jakarta on Tuesday.
He said Indonesia’s carbon market potential is estimated at 13.4 billion tons of CO₂ equivalent for the 2024–2050 period.
The potential comes from multiple sources, including land restoration, production forests, social forestry, and customary forests.
“To support greenhouse gas (GHG) emission offset targets in the forestry sector, several key goals must be achieved,” he said.
These include managing at least 48.7 million hectares of forest to reduce emissions and restoring at least 3.5 million hectares of degraded land to enhance carbon absorption.
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“Third, optimizing conservation areas, including around 1.3 million hectares of open land,” Raja Juli added.
He said general principles governing the forestry sector’s carbon economic value (NEK) have been established.
The NEK framework focuses on carbon trading through GHG emission offsets, with the forestry sector providing Forestry and Other Land Use (FOLU) carbon credits.
Participants include permit holders, social forestry groups, indigenous communities, private forest owners, and environmental service permit holders in conservation areas.
The scheme covers production and protected forests, conservation zones, customary forests, private forests, and other land-use areas.
Raja Juli added that the Forestry Ministry is responsible for approving non-emission reduction certificate (Non-SPE) carbon trading and providing recommendations for SPE and Non-SPE mechanisms, including corresponding adjustments.
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Translator: Arnidhya Nur Zhafira, Cindy Frishanti Octavia