Ecobiz.asia – Keeping Indonesia’s watersheds healthy is critical to tackling climate change and unlocking green finance through the country’s carbon pricing scheme, officials said on Wednesday.
Speaking at a multi-stakeholder forum on watershed management and climate policy, Haruni Krisnawati, senior advisor on climate change to the Forestry Minister, said watersheds act as “shared homes” that support food, water, energy and community welfare.
“When forests in watersheds are maintained, we safeguard carbon stocks and ensure climate stability,” Haruni said, adding that deforestation, land conversion and forest fires have already pushed watersheds into crisis, compounded by droughts and extreme weather.
Indonesia aims to reach Forestry and Other Land Use (FOLU) Net Sink 2030, balancing carbon absorption and emissions in the sector by curbing deforestation, expanding reforestation and rehabilitation, and restoring peatlands and mangroves.
Nearly 60% of the nation’s emission reduction targets rely on forestry and watershed management.
Healthy watersheds can also generate economic value. Under Indonesia’s carbon economic value (NEK) scheme, ecosystem services such as carbon absorption could be monetized in carbon markets, opening space for green investment and climate finance.
“Carbon pricing is not just a fiscal instrument. It is a new pathway to strengthen climate funding and attract investment,” Haruni said.
The forum, held Sept. 2–4 in Jakarta, gathered government agencies, businesses, academics, civil society groups, media and international partners.
It was part of the Leadership National Training Program under the Forestry Ministry, focusing on governance of carbon markets and watershed management. ***
