Ecobiz.asia — Indonesia’s Ministry of Forestry is preparing to market carbon stock from emissions reduction activities in East Kalimantan, along with a number of forestry carbon pipeline projects, following the issuance of the new regulation on carbon trading in the forestry sector.
Principal Advisor to the Minister of Forestry, Edo Mahendra, said the government aims to optimize existing carbon assets after the enactment of Minister of Forestry Regulation (Permenhut) No. 6/2026 on carbon trading procedures through greenhouse gas (GHG) emission offset mechanisms in the forestry sector.
One key focus is the utilization of excess carbon credits from REDD+ activities in East Kalimantan under the World Bank’s Forest Carbon Partnership Facility–Carbon Fund (FCPF-CF).
“There are FCPF excess credits in East Kalimantan. They are high quality and high integrity. We must optimize them. A joint team will be established for this,” Edo said during a panel discussion on the dissemination of Permenhut 6/2026 in Jakarta on Wednesday (April 29, 2026).
Indonesia has delivered a total of 26.2 million tonnes of verified emission reductions (tCO₂e) under the East Kalimantan Emission Reductions Program. Of this amount, 22 million tonnes were contracted and paid for under the Emission Reductions Payment Agreement (ERPA) with the FCPF, generating total payments of US$110 million.
However, an additional 4.2 million tonnes of verified emission reductions were not included in the ERPA contract. These excess reductions remain recognized as jurisdictional emission reductions and are considered an asset of the Indonesian government.
The remaining carbon units can be utilized or monetized through carbon market mechanisms.
Edo added that, under the jurisdictional approach, the government is targeting the registration of six provinces under the ART (Architecture for REDD+ Transactions) scheme. Five provinces are expected to be registered under the High Forest Low Deforestation (HFLD) category, while one province will be registered under the TREES (The REDD+ Environmental Excellence Standard) program.
For non-government-managed carbon projects, Edo said several pipeline projects are nearing readiness to enter carbon markets. International carbon standard bodies have formally communicated with the Ministry of Forestry regarding projects that are aligned with Presidential Regulation No. 110/2025 and Permenhut 6/2026.
“These pipeline projects cannot be disclosed yet, but they already exist,” he said.
Edo emphasized that carbon trading should not be seen as an end goal, but rather as one of several instruments to help Indonesia achieve its climate targets and mobilize climate finance.
Meanwhile, Director General of Sustainable Forest Management at the Ministry of Forestry, Laksmi Wijayanti, said the ministry is preparing several strategies to ensure high-integrity and high-quality forestry carbon credits.
These include providing clarity on investment locations and data availability, implementing a nesting framework, strengthening collaboration with reputable international carbon standard and registry bodies, developing methodologies tailored to Indonesia’s conditions, offering technical support to regional governments and local communities, and enhancing public awareness. ***
