New Treasure Emerges from Indonesia's Seas, Trenggono Acts Swiftly

Jakarta, CNBC Indonesia - The potential for blue carbon absorption from Indonesia’s marine and fisheries sector is estimated to approach 10 million tonnes of CO2 equivalent per year. This figure comes from mangrove and seagrass ecosystems under the authority of the Ministry of Marine Affairs and Fisheries (KKP), simultaneously offering a major opportunity in developing a sea-based carbon exchange.

Minister of Marine Affairs and Fisheries Sakti Wahyu Trenggono stated that this potential demonstrates the significant role of the marine sector in climate change mitigation efforts as well as in creating economic value from carbon.

“Our blue carbon asset potential is very large. The total area of blue carbon potential from mangroves under the Ministry of Marine Affairs and Fisheries’ authority reaches 997,733 hectares, projected to absorb up to 6.3 million tonnes of CO2 equivalent per year,” said Trenggono during a working meeting with Commission IV of the DPR RI at the Parliamentary Complex, Jakarta, on Tuesday (14/4/2026).

In addition to mangroves, he mentioned that seagrass ecosystems also contribute substantially to carbon absorption.

“Meanwhile, the potential carbon from seagrass ecosystems, with an area of 860,156 hectares, results in a total blue carbon absorption potential in Indonesia of 3.7 million tonnes of CO2 equivalent per year,” he continued.

Combined, the total blue carbon absorption from the marine and fisheries sector nearly reaches 10 million tonnes of CO2 equivalent per year. In line with this potential, the KKP is preparing the implementation of carbon economic value specifically in the marine and fisheries sector, including carbon trading mechanisms or a blue carbon-based exchange.

“In line with the meeting agenda, on this occasion we convey the readiness for implementing carbon economic value in the marine and fisheries sector,” he said.

Trenggono explained that there are three main pillars in developing a carbon exchange in the marine and fisheries sector. First, strengthening regulations as derivatives of national policies.

“Where the KKP is currently drafting technical regulations as a follow-up to PP 110 of 2025,” he revealed.

The second pillar is strengthening data and information, including mapping ecosystem areas and calculating carbon absorption. “Determination of emission baselines to accurate calculation of CO2 absorption potential,” he added.

Meanwhile, the third pillar is the implementation of real projects in the field. “Project pipeline as real implementation in the field, through pilot projects for blue carbon restoration and emission reduction programmes in the fisheries sector,” explained Trenggono.

In its execution, blue carbon trading has unique characteristics compared to the land sector, particularly because it involves marine space.

“The mechanism for organising carbon trading… requires integration between legal certainty in the form of marine space utilisation or KKPRL, a carbon unit registry system, and strict supervision to maintain national contribution targets,” he clarified.

“The use of marine space becomes the main distinguishing characteristic between blue carbon and the land sector,” Trenggono added.

He emphasised that every blue carbon project must have a marine space utilisation permit as a basis for legality. “Every carbon mitigation action must have approval for the suitability of marine space utilisation activities, as the primary prerequisite for project site legality,” he stressed.

To ensure transparency, the KKP is also collaborating with the Ministry of Environment and Forestry in the carbon registration system.

“Every document and climate change action plan is recorded to guarantee Indonesia’s blue carbon data sovereignty and prevent double claiming,” he said.

Furthermore, Trenggono assured that the blue carbon trading procedures have been prepared considering economic impacts for the state and coastal communities.

“The KKP has drafted blue carbon trading procedures in accordance with Presidential Regulation number 110 of 2025. All procedures drafted have considered the impact and economic value of carbon that will provide real contributions to the state and coastal communities in an optimal and sustainable manner,” said Trenggono.

Previously, the President’s Special Envoy for Energy and Climate, Hashim Djojohadikusumo, targeted Indonesia’s carbon market to start operating in July 2026 with transaction values potentially reaching billions of US dollars.

“I can report that the government has set the end of June for market operations, and in July we hope for significant trading that can reach billions of dollars—this is an extraordinary achievement, and all ministers in the red-and-white cabinet have the same mission to succeed,” Hashim stated at the ESG Sustainability Forum 2026 CNBC Indonesia, on Tuesday (3/2/2026).

He also emphasised that Indonesia’s carbon market will rely on nature-based solutions like mangroves and seagrass, which are currently in demand by global players.

“I can say that international carbon players are interested. They are not interested in industry-based, chemical plants, cement, coal-fired power plants… they are more interested in nature-based solutions. We cannot overestimate; according to international players, everything the world wants is included in PP 110/2025,” he stressed.