Indonesia Identifies 239,000 Ha of Clean and Clear Conservation Areas for Carbon-linked Restoration

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Ecobiz.asia – Indonesia has identified around 239,000 hectares of clean and clear open areas in conservation zones that could support restoration activities linked to carbon offset development, as the government seeks to create new financing channels for conservation.

Nunu Anugrah, Director of Environmental Services at the Ministry of Forestry, said carbon offsets are a new opportunity to attract public participation and investment into conservation areas, particularly for restoration activities in areas affected by encroachment, fragmentation, and deforestation.

“For carbon, we see an opportunity. For example, in countering encroachment, there is damage, fragmentation, and deforestation. This is an opportunity that can involve public participation in investing in restoration,” Nunu said during a discussion on the issuance of Minister of Forestry Regulation No. 6/2026 on carbon trading through greenhouse gas emission offsets in the forestry sector in Jakarta on Wednesday (April 29, 2026).

He said the Ministry of Forestry has calculated around 1.2 million hectares of open areas in conservation zones. Of that amount, around 239,000 hectares are considered clean and clear, while around 983,000 hectares remain affected by ‘conflict’.

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“The open area we calculated is 1.2 million hectares. The clean and clear area is 239,000 hectares. That means 983,000 hectares are, in quotation marks, still in ‘conflict’,” Nunu said.

Nunu said the opportunity is not limited to clean and clear areas. He said areas still affected by conflict may also attract investors because restoration and conflict resolution could improve the quality and value of conservation areas.

“Even conflict areas are also interesting for investors. They are also willing to enter. Resolving conflict can at the same time add value or quality to our conservation areas,” he said.

The potential comes as the Ministry of Forestry moves to include carbon provisions in the regulatory framework for environmental services in conservation areas. Nunu said the ministry already has Minister of Forestry Regulation No. 25/2025 on the utilization of environmental services in nature conservation areas, nature reserve areas, and hunting parks. The regulation was later amended specifically to include carbon provisions through Minister of Forestry Regulation No. 7/2026.

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“We have Minister of Forestry Regulation No. 25/2025 on the utilization of environmental services in nature conservation areas, nature reserve areas, and hunting parks. It was amended specifically for the carbon chapter through Minister of Forestry Regulation No. 7/2026. The spirit is mainstreamed into Permenhut No. 6/2026,” he said.

Nunu said carbon is now being positioned as an additional environmental service commodity in conservation areas, alongside other potential services such as wind and solar resources.

“Previously, there was no carbon commodity in conservation areas. This adds one. In addition to carbon, we also added wind and solar objects,” he said.

He said the carbon mechanism could help address the financing gap in conservation management. According to Nunu, funding needs for conservation areas from 2021 to 2025 reached Rp11.4 trillion, while the state budget only covered Rp7.8 trillion, leaving a gap of around 30 percent.

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“There is a funding gap of 30 percent. From 2021 to 2025, the need was Rp11.4 trillion, while the state budget was only Rp7.8 trillion. So the spirit is, let us create financing for conservation funding,” Nunu said.

He added that the current regulatory framework for conservation areas still focuses on business licensing schemes, with activities allowed in utilization zones or blocks. He said the ministry manages around 27.4 million hectares across 579 conservation units.

“In Regulation No. 25 as amended by Regulation No. 7/2026, we have only regulated the business licensing scheme. This means there are spatial limits. What is allowed is in utilization zones or blocks. We have 27.4 million hectares from 579 units,” Nunu said. ***

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