Indonesia advances carbon trading to sustain forests, welfare

Photo caption: Bujang Raba landscape in Bungo District, Jambi.

Jakarta (ANTARA) - The Indonesian government is developing an inclusive framework for high-integrity carbon trading to improve forest management, emphasizing the need to balance environmental sustainability with community welfare.

Forestry Minister Raja Juli Antoni said his ministry envisions transparent carbon trading in the forestry sector that delivers tangible benefits to communities.

“Carbon is not merely a new economic commodity, it is a strategic instrument to accelerate forest rehabilitation, safeguard biodiversity, and support national climate targets in an accountable manner through a scientific approach,” he said in a statement released on Monday.

Secretary of the Directorate General of Sustainable Forest Management at the Forestry Ministry Erwan Sudaryanto echoed the view, highlighting Indonesia’s approach to carbon trading as a means of promoting the responsible use of forests and their resources.

He emphasized that the government seeks to ensure that forest management reform goes beyond economic value to encompass environmental sustainability, community welfare, expanded development financing, and climate goals.

Sudaryanto added that the Forestry Ministry would continue to build a robust regulatory foundation for the policy, including a 2026 ministerial regulation on procedures for carbon trading through greenhouse gas emission offsets in the forestry sector.

“The regulation is expected to provide legal certainty, strengthen governance, bolster the credibility of Indonesia’s carbon market, and ensure that carbon trading remains aligned with sustainable forest management,” he said.

Ilham, the ministry’s director of forest utilization business development, noted that Indonesia is diversifying the use of forests by shifting from a timber-oriented approach toward non-timber products, environmental services, ecotourism, and carbon trading.

“The transformation is part of efforts to expand financing for sustainable forest management,” he explained.

He stressed the importance of developing a high-integrity carbon market that benefits the state, the environment, and communities.

“Integrity is a key requirement for Indonesian carbon to be competitive and trusted in the global market,” the official said.