Indonesia Now Entering a New Phase in Development of Carbon Market

RRI.CO.ID, Jakarta - The Ministry of Forestry reaffirms Indonesia's commitment to strengthening climate change mitigation actions and developing a high-integrity carbon market thru active participation in the Ecosperity Week 2026 and GenZero Climate Summit 2026 in Singapore. The international forum takes place from May 18 to 22, 2026.

In several discussion sessions, the Ministry of Forestry highlighted the strengthening of the domestic carbon market in the forestry sector, starting from the development of a credible carbon accounting framework, the simplification of the carbon unit issuance process, to the protection of the environment and communities.

The Chief Advisor to the Minister of Forestry, Edo Mahendra, said that Indonesia is now entering a new phase in the development of the carbon market thru clearer regulations and support for forestry carbon investments.

"The Minister of Forestry Regulation Number 6 of 2026 lays the foundation for accelerating forest carbon trading thru a clear and simple business process with a nesting approach," Edo said.

According to him, the regulation is a response to the increasing market demand for high-quality and integrity carbon credits. The nesting approach is considered important to prevent double counting of emissions while also strengthening the trust of the market and international investors.

On the other hand, the Director of Forest Utilization Business Development, Ilham, emphasized that the simplification of the carbon credit business process in Ministerial Regulation Number 6 of 2026 does not reduce the government's commitment to social and environmental protection.

"Simplification of business processes still requires implementing entities to prove active community participation, beneficial distribution of advantages, and fulfillment of additionality elements," he stated.

Indonesia targets achieving net zero emissions by 2060 or sooner thru the Forestry and Other Land Use (FOLU) Net Sink 2030 program with a net absorption target of 140 million tons of CO₂ equivalent. The government considers the forestry sector to be one of the main pillars in achieving national emission reduction targets and Indonesia's contribution to the global climate agenda.