Indonesia's Pulp and Paper Industry Targets Major Role in Global Carbon Market
JAKARTA, KOMPAS.com - The pulp and paper industry is beginning to target new opportunities from the global forestry carbon trade, in line with the changing direction of forest management in Indonesia.
The economic value of forests is no longer solely derived from timber, but also from carbon, environmental services, biodiversity, and community empowerment.
These opportunities have been strengthened following the government’s issuance of Forestry Ministerial Regulation No. 6 of 2026, which regulates carbon trading in the forestry sector and the implementation of multi-business forestry.
“The Indonesian pulp and paper industry welcomes the issuance of Forestry Ministerial Regulation No. 6 of 2026, which provides regulatory certainty and a clearer governance framework for the development of carbon trading in the forestry sector,” said Suhendra in an official statement on Wednesday (13/5/2026).
According to him, carbon represents a new added value for the pulp and paper industry, but does not replace the sector’s primary function as a producer of renewable fibre-based materials.
The industry is currently strengthening its low-carbon strategy through sustainable industrial plantation forest management, energy efficiency, the use of renewable energy, the application of circular economy principles, and innovations in recycled products.
Suhendra assesses that renewable fibre-based pulp and paper products are increasingly needed by the global market because they are considered more environmentally friendly and capable of replacing fossil-based materials.
“Renewable fibre-based pulp and paper products are an important part of climate solutions because they can replace fossil-based materials, support emission reductions, and meet the global market’s needs for more environmentally friendly products,” he said.
Nevertheless, Suhendra believes that the success of the carbon market still depends on project quality, measurement transparency, methodological clarity, and international market acceptance.
“APKI, together with all its members, is committed to supporting the development of high-quality carbon credits that meet international standards, provide real environmental benefits, and create added economic and social value,” he stated.