Zulhas: Forest Communities Must Be First to Receive Carbon Economy Benefits

Coordinating Minister for Food Zulkifli Hasan has stressed that the development of the national carbon market must not stop at business transactions and green investment. He stated that the economic benefits of carbon must first be felt by the communities who have been living around the forests and helping to preserve them. “The communities around the forests must be the first to feel the economic benefits of carbon. They protect the forests, so they must also obtain added value from the forest’s sustainability,” Zulkifli said in an official statement received in Jakarta on Monday. As Chairman of the Carbon Economic Value Steering Committee, Zulkifli said the carbon market must become an economic instrument capable of delivering two benefits simultaneously. First, encouraging credible carbon transactions. Second, opening up welfare opportunities for the community while maintaining the sustainability of Indonesia’s forests. Zulkifli explained that the government is accelerating the implementation of national carbon trading. This step is being taken through the completion of regulations, cross-sectoral authority alignment, and strengthening of carbon market infrastructure. According to him, various implementation obstacles are being resolved so that carbon trading does not remain merely a concept on paper. The government wants to ensure that carbon trading runs credibly, transparently, and is trusted by the international market. “The government continues to remove implementation barriers so that the carbon market does not stop as a concept, but becomes an economic instrument that runs credibly, transparently, and is trusted by the international market,” Zulkifli said. The government marked this acceleration by handing over the Forestry Minister’s Approval for carbon trading projects and inaugurating the Indonesia Forestry Carbon Hub. The Forestry Minister’s Approval handed over includes the issuance of more than 31.7 million tonnes of carbon dioxide equivalent units. These carbon units originate from an area of approximately 224,000 hectares. This step is part of the implementation of Presidential Regulation Number 110 of 2025 concerning Carbon Economic Value. The regulation serves as an important foundation for strengthening the national carbon trading ecosystem. Zulkifli said the government believes the carbon trading ecosystem can drive green investment of up to USD 5.8 billion, or approximately IDR 152.9 trillion. In addition, carbon trading is also expected to accelerate the achievement of national emission reduction targets. Going forward, the government will accelerate the completion of the national carbon trading infrastructure. One important agenda is the launch of the Carbon Unit Registry System. The system is being developed by the Ministry of Environment with support from the Financial Services Authority as the backbone of Indonesia’s carbon trading ecosystem. With an integrated and transparent system, Indonesia is expected to strengthen its position in the global carbon market. The government also aims to make the green economy a new source of inclusive growth, especially for communities around forest areas.