Indonesia is moving to broaden participation in its forestry carbon trading system, with a focus on inclusivity and community involvement, according to Forestry Minister Raja Juli Antoni.
Expanding Access to Carbon Markets
Minister Antoni stated that the initiative, guided by President Prabowo Subianto’s direction, aims to include not only the private sector but likewise local communities in the benefits of carbon trading. The ultimate goal is to preserve Indonesia’s forests and improve public welfare, Antoni said during a press conference in Jakarta on Wednesday.
This approach is formalized through Presidential Regulation No. 110 of 2025 and further detailed in Forestry Minister Regulation Number 6 of 2026, which was enacted on April 13, 2026. The minister emphasized that the new regulations are designed to prevent the creation of exclusive carbon trading spaces.
Community Participation
The regulations specifically recognize social forestry and customary forest schemes, positioning communities as legitimate and equal participants in the system. According to Antoni, those who actively protect forests, maintain land cover, and care for ecosystems will now have the opportunity to benefit economically from carbon trading.
Antoni characterized this as a form of state recognition for grassroots forest guardians and a demonstration of social justice within the transition to a green economy. He reiterated that the process will involve farmers in social forestry and indigenous communities alongside private sector actors.
The government intends for the economic value of carbon to incentivize sustainable forest management, conservation, rehabilitation, and ecosystem restoration. The anticipated outcome is a system where economic benefits are aligned with ecological and social gains.
Frequently Asked Questions
What is the primary goal of Indonesia’s new approach to forestry carbon trading?
The primary goal is to preserve forests and improve public welfare by including both the private sector and local communities in the benefits of carbon trading, as stated by Forestry Minister Raja Juli Antoni.
What regulations support this new approach?
Presidential Regulation No. 110 of 2025 and Forestry Minister Regulation Number 6 of 2026 provide the framework for the implementation of carbon economic value instruments and procedures for carbon trading in the forestry sector.
Who is now considered a legitimate participant in Indonesia’s carbon trading system?
Communities involved in social forestry and customary forest schemes are now recognized as legitimate and equal participants, alongside the private sector.
As Indonesia develops this system, will it be able to balance the economic incentives of carbon trading with the long-term health of its vital forest ecosystems?
