NTB Prepares Regional-Owned Enterprise for Carbon Trading to Boost Green Economy

The West Nusa Tenggara (NTB) provincial government is preparing a regional-owned enterprise (BUMD) specifically to handle carbon trading, as part of efforts to strengthen the green economy and optimise the region’s potential for absorbing greenhouse gas emissions. Governor Lalu Muhamad Iqbal stated that the scheme is currently under discussion. “The provincial government is preparing a BUMD specifically to handle carbon trading,” Iqbal said after planting mangrove seedlings in Labuan Alas, Sumbawa, on Tuesday. He remained tight-lipped when asked whether the institutional scheme for the carbon trading BUMD would fall under the auspices of NTB Capital or operate as a separate entity. “The scheme is currently being discussed and prepared,” he affirmed. 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 extensive coastal areas highly suitable for mangrove forest development. This potential can 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 is NTB’s contribution to Indonesia by absorbing as much carbon as possible,” Iqbal concluded. The Ministry of Environment has emphasised that accelerating economic growth must no longer come at the expense of environmental sustainability, but rather proceed in harmony and balance with the protection of environmental functions. The carbon market is considered one solution for reducing greenhouse gas emissions through the trading of carbon credits, which has the potential to become a new source of revenue. Minister of Environment Mohammad Jumhur Hidayat noted that Indonesia requires substantial funding of USD 286 billion to reduce carbon emissions, making it impossible for the state to bear the full cost. Investors engaging in carbon trading can involve local communities in mangrove planting and maintenance activities, simultaneously creating environmentally friendly employment opportunities.