NTB Prepares Regional-Owned Enterprise for Carbon Trading to Boost Green Economy
The West Nusa Tenggara (NTB) Provincial Government is preparing a specialised regional-owned enterprise (BUMD) tasked with managing carbon trading. This is part of an effort to strengthen the green economy while optimising the potential for greenhouse gas emission absorption.
“The provincial government is preparing a BUMD specifically to handle carbon trading,” said the Governor of NTB, Lalu Muhamad Iqbal, when met after planting mangrove seedlings in Labuan Alas, Sumbawa, NTB, on Tuesday.
Iqbal was brief when asked further whether the institutional scheme for the special carbon trading BUMD would fall under the auspices of NTB Capital or stand as an independent entity. He emphasised that the formation of the special body to handle carbon trading is currently being discussed at the local government level.
“We are currently discussing and preparing the scheme,” said Iqbal.
The NTB government is encouraging emission-producing companies to contribute to environmental restoration through mangrove ecosystem rehabilitation activities. According to Iqbal, West Nusa Tenggara possesses vast coastal areas suitable for mangrove forest development. This potential could serve as a tangible regional contribution to absorbing carbon emissions while supporting national emission reduction targets.
“NTB has significant potential with coastlines that are very suitable for mangrove planting. This means NTB is contributing to Indonesia by absorbing as much carbon as possible,” Iqbal concluded.
The Ministry of Environment emphasises that the acceleration of economic growth must no longer sacrifice environmental sustainability. Instead, it must proceed in harmony and balance with the protection of environmental functions so that the benefits of economic development can be felt inclusively and sustainably by the community.
The carbon market is one of the solutions in the effort to reduce greenhouse gas emissions through the buying and selling of carbon credits, which has the potential to become a new source of revenue.
The Minister of Environment, Mohammad Jumhur Hidayat, stated that Indonesia requires massive funding to reduce carbon emissions, valued at 286 billion US dollars, or equivalent to Rp4,000 to Rp5,000 trillion, making it impossible for the state to bear the financing entirely. Investors involved in carbon trading can involve local communities in mangrove planting and maintenance activities, which simultaneously creates eco-friendly employment opportunities.