Ecobiz.asia — PT Bank Danamon Indonesia Tbk has partnered with climate and nature-focused organisation PT Udara Untuk Semua (Fairatmos) to develop financing for nature-based carbon projects, as Indonesia seeks to expand sustainable finance and strengthen its domestic carbon market.
The partnership was formalised through a memorandum of understanding signed in Jakarta on Tuesday (Jan. 13, 2026), covering financing for forestry carbon projects, emissions accounting, and the issuance and trading of carbon credits.
Under the agreement, Fairatmos will provide technical expertise, technology support and access to international carbon buyers, while Danamon will act as a financing provider for forest project developers as well as carbon credit buyers.
Danamon’s Director of Sharia and Sustainable Finance, Herry Hykmanto, said the partnership was part of the bank’s strategy to expand its sustainable finance portfolio and support Indonesia’s transition to a green economy.
“This collaboration allows the financial sector to play a more active role in reducing carbon emissions, while offering relevant financing solutions for customers and communities,” Herry said.
Fairatmos said the cooperation marked a significant step for nature-based carbon financing in Indonesia.
Fairatmos Chief Executive Officer Natalia Rialucky described Danamon as the first Indonesian financial institution to formally enter financing schemes for forestry-based carbon credits.
“After three years of bridging the financing gap in this sector, our collaboration with Danamon serves as an early model showing that nature-based financing can be structured in a bankable way,” Natalia said.
Through the partnership, the two parties will explore the development of sustainable financial instruments, including financing for forest and coastal restoration projects that generate high-integrity carbon credits.
Fairatmos currently manages and supports restoration projects across forest, coastal and blue carbon ecosystems in Southeast Asia, working with a network of more than 500 asset owners.
Danamon said the initiative aligns with the group’s sustainability commitments, including its target to reach net-zero emissions from operations by 2030 and from its financing portfolio by 2050. The bank also sees carbon markets as part of broader opportunities in Indonesia’s green finance sector.
The partnership is expected to strengthen Indonesia’s climate finance ecosystem and encourage greater participation from the banking sector in conservation- and restoration-based carbon projects. ***
