Indonesia holds immense potential in the biological carbon trade, particularly from its forestry, mangrove, and peatland sectors. Minister of Forestry Raja Juli Antoni stated that Indonesia’s potential carbon trade value could reach up to IDR 41.7 trillion per year, calculated from the sale of 13.4 billion tons of CO₂ equivalent for USD 5 per ton.
Dean of the Faculty of Forestry at Universitas Gadjah Mada (Forestry UGM), Dr. Sigit Sunarta, emphasized that forest carbon trading is a key pillar of climate change mitigation, presenting an opportunity for the forestry sector to contribute more significantly to Indonesia’s sustainable economic development.
“The potential of carbon trading as part of a paradigm shift in natural resource governance, particularly in forestry from extraction-based to ecosystem-based management, is highly significant,” said Dr. Sunarta at the Business Matching event themed “Forest Carbon Trade: Synergy of Business, Academia, and Government for Indonesia’s Climate Action” held recently at Forestry UGM.
Laksmi Wijayanti, Director General of Sustainable Forest Management at the Ministry of Forestry, underscored that voluntary and international carbon trading must prioritize quality. She noted that the government is committed to ensuring that Indonesia’s forest carbon credits genuinely result from verified mitigation efforts.
“Every credit must be traceable, verifiable, and provable. It must not generate controversy, must ensure fair benefit-sharing, and all processes must be fully accountable,” said Wijayanti.
Hermudananto, Chair of the Business Matching Committee and Head of CDC-Forestry UGM, stated that universities, especially the Faculty of Forestry, must strengthen cross-sector collaboration to accelerate the implementation of forest carbon trading in Indonesia.
“Carbon trading provides a strategic avenue for academia and industry to establish tangible partnerships in supporting the national carbon economy,” he remarked.
The talk show session featured speakers from various sectors, including government, industry, and forestry associations.
Among them were the Coordinator of the Domestic Cooperation Working Group of the National Emission Reduction Coordination Team (NEK), Ministry of Environment and Forestry, Haryo Pambudi; Head of Fund Distribution Division, Environmental Fund Management Agency (BPDLH), Lia Kartikasari; Director of PT Menggala Rambu Utama, Indonesian Forest Entrepreneurs Association (APHI), Sugijanto Soewadi; and Director of Technical and Business Development at Dassa (PT Merdeka Sejahtera Persada), Haryo Ajie Dewanto.
According to Hermudananto, the speakers agreed on Indonesia’s strategic role as a global carbon credit provider and the importance of maintaining the quality and accountability of its national carbon credits.
“Developing carbon trading infrastructure is essential, particularly through the Partnership for Market Implementation (PMI) project in collaboration with the World Bank and the Ministry of Environment and Forestry,” he explained.
Additionally, the forum recommended harmonizing domestic and global carbon trading systems, strengthening governance, and developing transparent and equitable methodologies for carbon projects.
Author: Salwa
Editor: Gusti Grehenson
Post-editor: Salma
Photographs: Freepik and Forestry UGM