Bali Eyes Carbon Markets as a Sustainable Income Source

RRI.CO.ID, Bali - Bali has a significant opportunity to tap carbon trading as an environmentally friendly source of revenue.

The Ministry of Finance, through the Bali Provincial Office of the Directorate General of Treasury (DGT), has identified the potential value of carbon trading from mangrove ecosystems in Bali at up to IDR 1.7 trillion.

Head of the Bali Regional Office of the DGT, Supendi, said the potential stems from the carbon sequestration capacity of the mangrove ecosystem in Ngurah Rai Grand Forest Park (Tahura).

He noted that mangrove restoration and conservation efforts not only provide environmental benefits but also open economic opportunities through carbon trading.

“By restoring existing mangroves, we not only help the environment but also generate revenue from carbon trading,” Supendi said in Denpasar on Thursday, June 25, 2026, as quoted by Antara.

In 2024, the Bali DGT conducted a natural resource assessment in the Tahura conservation area to calculate the value of ecosystem services, particularly carbon sequestration. The study found the area has the potential to sequester about 2,464,460.29 tons of carbon.

The economic potential was calculated using three references: the social cost of carbon, the World Bank’s carbon price, and the rate applied on the Indonesian Carbon Exchange (IDX Carbon).

Based on the 2026 State Budget exchange rate of IDR 16,500 per US dollar, the economic value of Tahura Ngurah Rai’s carbon is estimated at IDR 1.7 trillion, using the World Bank’s reference price of USD 44 per metric ton of carbon dioxide (CO₂) equivalent.

Using the social cost of carbon approach of USD 10.90 per ton of CO₂, the estimated value is IDR 423.26 billion. Using the IDX Carbon price of IDR 58,800 per ton of CO₂, the potential value is IDR 144.9 billion.

This potential is supported by the park’s extensive mangrove area. According to Bali Province Central Bureau of Statistics (BPS) data in 2021, mangrove coverage in Ngurah Rai reached 1,373.5 hectares, accounting for about 72 percent of Bali’s total mangrove area of 1,894 hectares.

Carbon trading is a market-based mechanism that allows companies or other parties to buy and sell emission permits or carbon units. The program encourages reducing greenhouse gas emissions by assigning economic value to sequestration or reduction efforts.

In practice, parties that successfully reduce or sequester carbon emissions can sell credits to those that are still emitting. Carbon trading thus serves as a funding instrument for the transition to a low-carbon economy while supporting climate change mitigation targets.

In Indonesia, carbon trading is regulated by the Indonesia Carbon Exchange (IDX Carbon), developed by the Indonesia Stock Exchange and supervised by the Financial Services Authority (OJK).

According to OJK data, since its launch on September 26, 2023, IDX Carbon has recorded 155 registered service users and 10 Greenhouse Gas Emission Reduction Certificate (SPE-GRK) projects.

Overall, transaction volume reached 1.98 million tons of CO₂ equivalent, with a total transaction value of IDR 93.75 billion.

With the significant carbon sequestration potential of the mangrove ecosystem in Tahura Ngurah Rai, Bali is well positioned to become a major producer of carbon credits in Indonesia, strengthening the island’s role in green economic development and environmental conservation. ***