Indonesia's carbon trading value to reach Rp5 trillion
Jakarta (ANTARA) - Indonesia’s carbon trading economic value could reach around Rp5 trillion (approximately US$277.7 million) if managed properly, accountably, transparently, and with the public interest at its core, Forestry Minister Raja Juli Antoni said here on Monday.
Antoni explained the carbon trading scheme follows directives from Indonesia’s President Prabowo Subianto, who has positioned public welfare as the primary focus of development.
“For this initial phase, there are already four carbon projects, consisting of three with Forest Utilization Business Permits (PBPH) and one social forestry project,” he said at the handover event of the Minister of Forestry’s approval for the carbon project and the inauguration of Indonesia’s Forestry Carbon Centre.
Antoni added the projects have the potential to prevent around 30 million tons of CO2 equivalent in greenhouse gas emissions.
Related news: Indonesia aims to end open dumping by 2028: Minister
He said the potential Non-Tax State Revenue (PNBP) generated from the three projects, spanning an area of about 225,000 hectares, could reach around Rp500 billion.
“And that is just from four areas. We have a potential area of around 12.7 million hectares for carbon trading. If that can be utilised, Indonesia has a massive opportunity to develop its carbon economy,” the minister said.
He emphasised that Indonesia’s carbon economic potential can only be maximised through good forest governance that is transparent, accountable, and free from corruption and manipulation.
“In such governance, Indonesia’s forests can become greener while serving as a new source of economic growth. The green economy is one of the new engines of growth expected to support the 8-percent national economic growth target,” he remarked.
In addition to driving economic growth, he said carbon trading serve as an instrument to reduce greenhouse gas emissions, develop carbon markets and various other carbon trading schemes, and boost the village economy, which is a key directive from President Subianto.
Related news: Indonesia expands carbon trading through social forestry
Related news: Indonesia ready to implement carbon trading ecosystem
Indonesia’s carbon trading value to reach Rp5 trillion
July 6, 2026 19:05 GMT+700
Forestry Minister Raja Juli Antoni speaks to the press after the handover of the Forestry Minister’s approval for carbon projects in Jakarta on Monday (July 6, 2026). (ANTARA/Lintang Budiyanti Prameswari)
Translator: Lintang Budiyanti, Raka Adji