Indonesian Political, Business & Finance News

Ministry of Marine Affairs Targets Blue Carbon Projects to Enter Trading Market by 2027

| Source: ANTARA_ID | Energy

Jakarta (ANTARA) — The Ministry of Marine Affairs and Fisheries (KKP) is targeting blue carbon projects to enter the carbon trading market by 2027, according to Ahmad Aris, Director of Coastal and Small Islands at the KKP’s Directorate General of Marine Management.

Aris said there would be at least one or two pilot projects based on seagrass meadows and mangroves that could enter the carbon trading market by 2027.

“The Minister’s target is 2027 — it has become something of a milestone. We hope to have pilot projects in place, both for seagrass and mangrove. Because when we talk about carbon projects, the process is lengthy, from preparation and validation through to verification,” Aris said in Jakarta on Monday.

The KKP noted that Indonesia possesses approximately 17 per cent of the world’s blue carbon ecosystems, encompassing mangroves, seagrass meadows and tidal marshes. This potential opens significant opportunities for Indonesia to play a role in global carbon trading.

Maritime territory covering nearly three-quarters of the nation’s total area forms the foundation for a blue economy estimated to be worth US$1.3 trillion.

With substantial blue carbon reserves, Indonesia stands to gain significant economic value from carbon trading, in line with rising international market demand.

According to Aris, the seagrass ecosystem is a focus for acceleration as it has not yet been included in the second Nationally Determined Contribution (NDC) document on national emissions reduction.

“National seagrass meadow area data is already available, reaching 660,000 hectares. The calculation methodology has also been published, but it has not yet been implemented. The emissions reduction potential is currently being calculated,” he said.

Aris emphasised that blue carbon trading is not solely about the carbon value, but also the ecological functions of coastal ecosystems.

To support the 2027 target, Aris said the KKP, together with other ministries and agencies, is drafting implementing regulations derived from Presidential Regulation Number 110 of 2025 on the Implementation of Carbon Economic Value Instruments and National Greenhouse Gas Emission Control.

These regulations are targeted for completion before June 2026 so that the marine sector can adjust its systems in accordance with policy changes.

The KKP has also designated 18 indicative locations for the Zoning Plan of Specific National Strategic Areas for Blue Carbon Reserves and Provincial Blue Carbon Location Designation.

These areas include the waters of Kotabaru (South Kalimantan), Derawan Islands (East Kalimantan), Tanimbar Islands (Maluku), Toli-Toli waters (Central Sulawesi), Supiori Island (Papua), Lingga waters (Riau Islands), and the northern waters of Java Island (Central Java and East Java).

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