Kemenhut Emphasizes that Carbon Trade Cannot Just Chase Economic Value 

ILLUSTRATION UNSPLASH/Yosafat Gusti

JAKARTA - The Ministry of Forestry (Kemenhut) emphasized that carbon trading should not only be seen as an economic instrument, but also must be part of a strategy to maintain forest sustainability and meet national climate targets.

The government assesses that the credibility of the Indonesian carbon market will be determined by transparent, integrated governance, and providing fair benefits for the community.

The Ministry of Energy and Mineral Resources considers that carbon trading can be a new source of funding to support sustainable forest management. However, this mechanism is considered to have no competitiveness in the global market if it is not supported by strong and accountable regulations.

The policy direction is in line with the commitment of the Minister of Forestry, Raja Juli Antoni, who places carbon not only as a new economic commodity, but as a strategic instrument to support the revitalization of forests, maintain biodiversity, and help achieve national climate targets based on a scientific approach.

At the national level, President Prabowo Subianto also emphasized the importance of maintaining the sovereignty of natural resources, including Indonesia's carbon potential, so that they can be managed independently for the benefit of the nation while contributing to global efforts to address climate change.

The Secretary of the Directorate General of Sustainable Forest Management (PHL) Erwan Sudaryanto said that the transformation of forest utilization being carried out by the government is not only directed at increasing the economic value of forest resources.

"The transformation of forest utilization that we build is not only oriented towards economic value, but also strengthens forest sustainability, improves community welfare, expands the source of development funding, and supports the achievement of national climate targets," said Erwan in Jakarta, Wednesday, August 12.

He emphasized that carbon trading must be carried out with the principles of integrity and transparency so that the benefits can be felt by all stakeholders.

To strengthen the governance, the Ministry of Forestry issued Regulation of the Minister of Forestry Number 6 of 2026 concerning the Procedure for Trading Carbon through Offset Greenhouse Gas Emissions in the Forestry Sector. This regulation is prepared as a legal basis for the implementation of carbon trading in the forestry sector.

"This regulation is expected to be able to provide legal certainty, strengthen governance, increase the credibility of the Indonesian carbon market, as well as ensure that carbon trading continues to support sustainable forest management," he said.

Meanwhile, the Director of Forest Utilization Business Development Ilham explained that the forestry sector is currently moving towards a multi-business forestry system. In this model, forest utilization is no longer based on wood production, but also includes non-wood forest products, environmental services, ecotourism, and carbon trading.

According to Ilham, this change opens up new financing opportunities for forest management. However, carbon that is traded must meet the principle of high integrity carbon credits in order to be accepted and compete in the international market.

Some of the requirements that must be met include additional environmental benefits (additionality), community involvement, fair benefit sharing, biodiversity protection, and risk management of emission reversals.

"Carbon trading must provide benefits for the country, society, and forest sustainability simultaneously. Integrity is the main requirement for Indonesian carbon to have competitiveness from being trusted in the global market," explained Ilham.