Indonesia promotes carbon trading to restore forests

Jakarta (ANTARA) - Indonesian Forestry Minister Raja Juli Antoni is promoting carbon trading as a mechanism to attract private financing and investment for forest planting and restoration.

In a statement issued on Thursday, Antoni said the mechanism could help transform the forestry business model from logging to forest restoration while expanding forest cover.

"This is a real opportunity for us to plant trees and for the private sector to transform its business model from logging to planting, shifting from an extractive approach to a restorative one," Antoni said.

He emphasized that the development of forestry financing based on nature-based solutions must be supported by transparent data on potential locations, viable activities, and clear governance.

To support the initiative, the Forestry Ministry is preparing spatial data to identify potential areas and align them with various forest management schemes.

According to Antoni, the spatial data can later be overlaid with maps of Forest Utilization Business Permit (PBPH) areas and social forestry zones.

The mapping is intended to help investors identify suitable locations for forest planting, restoration, and carbon-based projects in compliance with prevailing regulations.

"We are systematically compiling data and providing guidance on planting methods and related procedures. If investors wish to undertake planting or forest restoration projects, they will receive clear information on locations, activities, and implementation processes," he explained.

The government is also committed to ensuring that carbon project development meets high standards of quality, credibility, and governance.

Antoni said the strategy is aligned with Presidential Regulation No. 110 of 2025 on the Implementation of Carbon Economic Value and Greenhouse Gas Emissions Control, which provides the main regulatory framework for advancing Indonesia's carbon trading mechanism.

He added that the mechanism forms an integral part of Indonesia's efforts to reduce greenhouse gas emissions and achieve its national climate targets.

"This is essentially what President Prabowo Subianto aims to achieve through Presidential Regulation No. 110 of 2025," the minister said.

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Translator: Arnidhya Zhafira, Uyu Liman

Editor: Primayanti

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