The Indonesian Ministry of Forestry and the United Nations Environment Programme (UNEP) are expanding their collaboration to advance climate action, forestry management, and the development of carbon markets. This strengthening of ties follows a memorandum of understanding previously signed in 2024.
During a meeting at the UN Headquarters in New York on Tuesday, May 12, Indonesian Forestry Minister Raja Juli Antoni and UNEP representatives discussed several critical priorities. These included the development of forest carbon markets, the strengthening of REDD+ (Reducing Emissions from Deforestation and Forest Degradation), and the implementation of innovative financing for national parks.
Strategic Shift Toward a Global Carbon Hub
Indonesia has set an ambitious objective to establish itself as a global carbon hub by creating a high-integrity carbon market. This effort is central to the government’s broader climate priorities, specifically the achievement of the FOLU Net Sink 2030 target.
To operationalize this market, the government has introduced Forestry Ministerial Regulation Number 6 of 2026, which serves as a follow-up to Presidential Regulation Number 110 of 2025. Minister Antoni asserted that this regulation provides a “clear and comprehensive framework” for carbon trading in the forestry sector.
The framework covers the entire lifecycle of carbon trading, including project development, verification, and transactions. This structure is intended to ensure transparency and certainty for international partners and investors.
Innovative Financing and Regional Models
Beyond carbon trading, Indonesia is focusing on sustainable funding for conservation. The government has established the Task Force on Innovative Financing for National Parks to develop practical solutions for conservation areas, utilizing approaches such as blended finance.
Collaboration on REDD+ remains a key pillar of the partnership. Minister Antoni highlighted the support provided through the UN-REDD Program, specifically citing the “Green for Riau” initiative.
“The program is expected to run successfully and serve as a model for developing a Jurisdictional REDD+ approach in other regions,” Antoni remarked.
Global Representation and Future Outlook
The Indonesian government is also advocating for a stronger voice for tropical forest nations within the UNEP. Minister Antoni expressed hope that an increase in Indonesian professionals contributing to the organization could better support global environmental and forestry mandates.
Looking ahead, this partnership may lead to the translation of the 2024 memorandum of understanding into more concrete and impactful programs. If the “Green for Riau” initiative proves successful, it could potentially be scaled as a jurisdictional model for other regions within Indonesia.
Frequently Asked Questions
What is the primary goal of Indonesia’s new carbon market regulations?
The regulations, specifically Forestry Ministerial Regulation Number 6 of 2026, aim to provide a comprehensive framework for forestry-sector carbon trading to ensure transparency and certainty for investors and partners.
What is the “Green for Riau” initiative?
It is a project supported by the UN-REDD Program that Indonesia intends to use as a model for implementing a Jurisdictional REDD+ approach in other regions.
How does Indonesia plan to fund its national parks?
The government has created the Task Force on Innovative Financing for National Parks, which is tasked with developing financing solutions including blended finance and other innovative approaches.
How should global carbon markets balance the need for investor certainty with the goal of genuine environmental restoration?
