Govt Strengthens Regulatory Support for Forest Carbon Investment

RRI.CO.ID, Jakarta - Forest carbon investment in Indonesia is entering a new phase as the government expands access for investors, supported by simpler, internationally aligned regulations.

The Ministry of Forestry believes that carbon trading in the forestry sector offers significant opportunities to help meet emission-reduction targets while restoring critical land. The issuance of Ministerial Regulation No. 6/2026 reinforces this initiative.

“Indonesia has entered a new chapter in the carbon market era. This time, our political will has been clearly translated into regulatory measures,” said Senior Advisor to the Minister of Forestry, Edo Mahendra, in Jakarta on Monday, May 25, 2026, as quoted by Antara.

Edo explained that the regulation serves as the foundation for accelerating carbon investment and trade with clearer business processes. The government is opening all mechanisms for carbon economic value instruments to meet market demand for high-quality credits.

“In this regard, the government is opening all mechanisms for carbon economic value instruments, including through the nesting scheme. The nesting approach is crucial to ensure environmental integrity, prevent double counting, and strengthen market and investor confidence,” he said.

Director General of Sustainable Forest Management, Laksmi Wijayanti, noted that Indonesia is open to forestry carbon investments from various international schemes. She said the government has prepared a program to restore and rehabilitate 12 million hectares of critical land, announced at the 2025 UNFCCC COP 30 in Belém, Brazil.

“Thus, the Indonesian government is opening all mechanisms for forest carbon investment opportunities to meet President Prabowo Subianto’s commitment targets,” she stated.

Ilham, Director of Forest Utilization Business Development at the Ministry, added that simplifying carbon investments does not compromise the quality of resulting credits.

He stressed that the international market now demands carbon credits that meet high-integrity standards and the Core Carbon Principles (CCP) of the Integrity Council for Voluntary Carbon Markets (ICVCM).

“The President’s commitment to restoring and rehabilitating 12 million hectares is a major challenge for the forestry sector. However, this aligns with the needs of the international carbon market, which seeks credits of high integrity and quality,” said Ilham. ***