Ecobiz.asia — Indonesia has approved the first batch of four forestry carbon projects to participate in international carbon trading, marking a major milestone in the country’s efforts to operationalize its forest carbon market.
The projects are expected to generate approximately 31 million tonnes of carbon dioxide equivalent (CO₂e) in emission reductions, with an estimated transaction value of Rp5 trillion (around US$305 million).
The approvals were granted by Minister of Forestry Raja Juli Antoni and cover three private forest concession projects alongside one community forestry initiative.
The projects include the Sumatera Merang Peatland Project in South Sumatra, developed by PT Global Alam Lestari; the Katingan Mentaya Project in Central Kalimantan, managed by PT Rimba Makmur Utama; The Mayas Project in West Kalimantan, developed by PT Mohairson Pawan Khatulistiwa; and the Bujang Raba community forestry project in Jambi.
Raja Juli said the approvals represent a key milestone in implementing Indonesia’s carbon market framework following recent regulatory reforms.
“Following President Prabowo Subianto’s directive, we have improved the ecosystem for carbon trading and are now ready to move into implementation,” Raja Juli said in Jakarta on Thursday (July 2, 2026).
The Ministry of Forestry will formally issue the ministerial approvals and facilitate the issuance of carbon credits for the four projects on July 6, three days before Indonesia launches its Carbon Unit Registry System (SRUK) on July 9.
The registry will serve as the central infrastructure for Indonesia’s national carbon market, supporting transparency, traceability, and international transactions.
The government estimates the transactions could generate around Rp500 billion in non-tax state revenue through carbon trading fees.
Raja Juli said the development of the carbon market forms part of Indonesia’s strategy to position the green economy as a new engine of growth while supporting President Prabowo Subianto’s target of achieving 8% annual economic growth.
“This is part of the President’s vision to make green growth a new engine of economic expansion while maintaining a balance between economic development and environmental sustainability,” he said.
The minister added that the inclusion of the Bujang Raba project demonstrates the government’s commitment to ensuring that local communities also benefit from carbon markets, alongside private-sector developers.
“Carbon trading should not benefit only large companies. Community forestry groups and local communities must also have the opportunity to participate and receive economic benefits from conserving forests,” he said.
Indonesia has been strengthening its carbon market architecture through a series of regulatory reforms, including Presidential Regulation No. 110 of 2025 and two forestry regulations issued earlier this year governing carbon governance, environmental integrity, transparency, and investment certainty.
The upcoming launch of the SRUK is expected to provide the institutional backbone for domestic and international carbon trading, reinforcing investor confidence and supporting Indonesia’s climate commitments. ***
