Jakarta – Indonesia has launched the Indonesia Forestry Carbon Hub in Jakarta on Monday, July 6. The step marks the country’s effort to build a transparent, technology-driven carbon market while accelerating emissions reductions from its forest sector.
The launch also included the issuance of ministerial approvals for the creation of carbon units under the Non-Greenhouse Gas Emission Reduction Certificate (Non-SPE GRK) scheme for several forestry projects deemed ready to begin generating carbon credits.
Forestry Minister Raja Juli Antoni said the initial phase covers verified pilot projects spanning around 225,000 hectares.
“The total emissions reduction potential from these initial projects reaches approximately 30 million tonnes of CO2 equivalent, with an estimated transaction value of Rp5 trillion and potential non-tax state revenue of around Rp500 billion,” he said during a press conference.
The approved projects include PT Global Alam Lestari’s Sumatra Merang Peatland Project, PT Rimba Makmur Utama’s Katingan Peatland Restoration and Conservation Project, PT Mohairson Pawan Khatulistiwa’s Mayas Project, and a community-based carbon trading initiative in Jambi’s Bujang Raba landscape managed by KKI Warsi.
The government said the Forestry Carbon Hub represents a shift in Indonesia’s forestry business model by linking forest conservation with economic incentives while ensuring benefits for local communities.
As part of the new system, the Ministry of Forestry is also preparing to launch the Carbon Unit Registration System (SRUK) on July 9. The platform will connect the Verra Registry, SRUK and the Indonesia Stock Exchange carbon exchange through application programming interfaces (APIs) and blockchain technology, enabling end-to-end traceability and greater transparency in carbon credit transactions.
Coordinating Minister for Food Affairs Zulkifli Hasan said the government has streamlined nearly 35 regulations—including government, presidential and presidential instruction regulations—to remove bureaucratic obstacles that have previously discouraged investment.
“Everything is being aligned so the process becomes easier, more transparent, and free from sectoral ego to support inclusive green economic growth,” he said.
Meanwhile, Chair of Indonesia’s Financial Services Authority (OJK) Friderica Widyasari Dewi said the financial sector is preparing to support the domestic carbon market through new sustainable finance policies.
According to OJK, the regulator has introduced the Indonesia Sustainable Finance Taxonomy (TKBI) and is developing financing guidelines for pilot carbon projects. It is also revising regulations governing the carbon exchange while exploring financial products backed by forestry carbon credits and agroforestry commodities.
OJK emphasised that financing mechanisms must ensure equitable benefits for local communities that play a central role in protecting Indonesia’s forests.
Presidential Special Envoy for Climate and Energy Hashim Djojohadikusumo highlighted President Prabowo Subianto’s target to restore 12.7 million hectares of degraded land, describing the initiative as a major opportunity for carbon market investment.
“We invite global investors to invest in restoring these degraded lands, and in return, they will receive certified carbon credits through the credible mechanism we launched today,” he said.
Indonesia has identified its forestry and other land use (FOLU) sector as a key pillar of its climate strategy. Under Indonesia’s FOLU Net Sink 2030 target, the government aims for the sector to absorb more greenhouse gas emissions than it produces by the end of the decade through forest conservation, peatland restoration, mangrove protection and sustainable land management.
The government said the new Forestry Carbon Hub, combined with strengthened governance and digital monitoring systems, is expected to increase investor confidence while supporting Indonesia’s emissions reduction commitments and expanding community participation in forest conservation. (nsh)
Banner photo: Ministry of Forestry
