Indonesia Establishes Forestry Carbon Hub to Strengthen National Carbon Market

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Ecobiz.asia — Indonesia’s Ministry of Forestry will launch the Indonesia Forestry Carbon Hub (IFCH) as a national collaboration platform to strengthen the country’s forestry carbon market ecosystem, bringing together government agencies, businesses, local communities, researchers, young professionals, and international partners to accelerate carbon market development.

The Indonesia Forestry Carbon Hub, located at the Ministry’s headquarters in Jakarta, is scheduled to be inaugurated on July 6 as part of a broader government effort to operationalize Indonesia’s forestry carbon market.

Edo Mahendra, Principal Advisor to the Minister of Forestry, said the hub is intended to serve as a focal point for collaboration among stakeholders involved in forest-based climate solutions.

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“On July 6, we will launch the Indonesia Forestry Carbon Hub. We invite all stakeholders to join us—government, businesses, communities, academics, international partners, and especially young people. Only by working together can we successfully build this ecosystem,” Edo told Ecobiz.asia on Friday.

According to Edo, the establishment of the hub reflects the government’s commitment to building a forestry carbon ecosystem that is credible, transparent, and capable of generating both environmental and economic benefits.

He said carbon trading should be viewed not as an end in itself, but as a financing mechanism to help Indonesia achieve its climate goals while supporting sustainable forest management.

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The launch of IFCH forms part of a series of initiatives aimed at strengthening Indonesia’s forestry carbon governance throughout July.

On the same day, the Ministry of Forestry will formally authorize four forestry carbon projects to participate in international carbon trading. The projects—three developed by forest concession holders and one by a community forestry group—are expected to generate around 31 million tonnes of carbon dioxide equivalent (CO₂e) in emission reductions, with an estimated transaction value of Rp5 trillion.

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The government estimates the transactions could generate approximately Rp500 billion in non-tax state revenue while marking the first implementation of international forestry carbon trading under Indonesia’s new regulatory framework.

Three days later, on July 9, the government is scheduled to launch the Carbon Unit Registry System (SRUK), which will serve as the country’s central registry for carbon units. The platform is expected to strengthen transparency, traceability, accountability, and market integrity by recording and managing carbon units traded within Indonesia’s national carbon market. ***

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