Indonesia expands carbon trading through social forestry

Jakarta (ANTARA) - The Indonesian Ministry of Forestry is expanding carbon trading opportunities for local communities by allowing projects to be developed not only within concession areas but also through social forestry schemes.

Through the social forestry program, the government provides opportunities for communities living around forests to obtain forest management rights, enabling them to utilize forest resources sustainably through environmentally friendly practices.

"Carbon trading is no longer limited to Forest Utilization Business Permit (PBPH) holders or concession areas. It is now being implemented in conservation areas, such as Way Kambas National Park, as well as under social forestry schemes," Forestry Minister Raja Juli Antoni said here on Monday.

Speaking at the inauguration of the Indonesian Forestry Carbon Center, Antoni said the expansion is part of the government's efforts to build an inclusive and sustainable carbon trading ecosystem.

As another milestone, the Carbon Unit Registration System (SRUK) is scheduled to be launched on July 9, 2026. The system is the result of close collaboration among various stakeholders, particularly the Financial Services Authority (OJK) and relevant ministries.

"Today we are issuing the Forestry Minister's approval for carbon units issuance through a non-certificate greenhouse gas emission reduction scheme for projects that are ready to be registered and traded, enabling carbon trading activities to commence immediately," Antoni said.

The minister also launched three PBPH projects and one social forestry project to demonstrate that carbon trading development is intended not only to benefit large businesses, but also to create opportunities for local communities through social forestry schemes.

"The Ministry of Forestry also extends its gratitude and appreciation to the younger generation for supporting the development of carbon trading. Today marks an important milestone as these carbon trading projects are now ready for implementation," he said.

According to Antoni, the Indonesian Forestry Carbon Center is expected to play a vital role in building a credible carbon trading ecosystem.

"A carbon trading system with integrity can only be achieved through collaboration among various stakeholders," he said.

On the demand side, the minister said the government has partnered with the International Emissions Trading Association (IETA), an organization comprising dozens of major global corporations, to help establish Indonesia as a global carbon trading hub.

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Translator: Lintang Budiyanti, Raka Adji

Editor: Bayu Prasetyo

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