Government Urges Climate Action as a Business Opportunity

  • 23 Jul 2026 16:31 WIB
  •  Voice of Indonesia

RRI.CO.ID, Jakarta - Minister of Environment/Head of the Environmental Control Agency (KLH/BPLH), Moh Jumhur Hidayat, emphasized that climate change is no longer just an environmental issue, but also part of the economic development strategy. According to him, climate action can open up investment opportunities, carbon trading, and encourage low-carbon technology innovations that strengthen industrial competitiveness.

"Climate risk is business risk. Emission reduction is not only about protecting the environment, but also about opening up investment opportunities, carbon trading, and low-carbon technology innovations," Jumhur said in Jakarta, Wednesday, July 22, 2026.

He said that Indonesia has a strategic position in the development of a green economy thanks to its wealth of natural resources, such as tropical rainforests, mangroves, peatlands, and biodiversity. According to him, this potential not only serves as a carbon sink but also has economic value if managed sustainably.

One of the potentials considered significant is mangrove rehabilitation. Jumhur mentioned that Indonesia still has more than 700 thousand hectares of mangrove areas that need to be restored. In addition to improving environmental quality, mangrove rehabilitation is also seen as a way to create investment opportunities thru carbon trading.

In addition, he highlighted the potential for emission reduction from around 400 open dumping sites in Indonesia. The methane gas produced from waste piles, according to him, can be utilized as an energy source while also providing economic value thru carbon trading mechanisms.

"If methane emissions are managed well, we gain two benefits at once: a better environment and economic opportunities thru the utilization of methane gas and carbon trading," he said.

Jumhur also appreciates Pertamina Group's efforts to continuously strengthen the decarbonization agenda thru energy efficiency, mangrove restoration, low-carbon technology development, and the implementation of Carbon Capture and Storage (CCS). According to him, companies that can adapt to climate risks will have a stronger competitive edge amid global economic changes.

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