Jakarta, INTI - The Indonesian government officially launched the Indonesia Forestry Carbon Hub. This strategic step represents Indonesia’s effort in strengthening national carbon market governance while encouraging the achievement of emission reduction targets.
Along with the launch, Minister of Forestry Raja Juli Antoni also issued ministerial approval for the creation of Carbon Units with a Non-Greenhouse Gas Emission Reduction Certificate (Non-SPE GRK) for several forestry projects ready for operation.
In a press conference, Minister Raja stated that in this initial phase, approvals are being granted to verified pilot projects covering an area of approximately 225,000 hectares.
"The total potential emission reductions from these initial projects reach approximately 30 million tons of CO2 equivalent, with an estimated economic transaction value of Rp5 trillion, and potential Non-Tax State Revenue (PNBP) for the country of around Rp500 billion," said Raja.
The forestry projects that successfully received the ministerial approvals are the Sumatra Merang Peatland Project, the Katingan Peatland Restoration and Conservation Project, the Mayas Project, and the implementation of community-based carbon trading in the Bujang Raba landscape in Jambi.
Collaborative Efforts from Other Institutions
The government is also collaborating with Verra, a global carbon standards agency. The Ministry stated that on July 9, the Carbon Unit Registration System (SRUK) will be launched. The system will be integrated with data from Verra and the Indonesia Stock Exchange (IDX) using blockchain technology to ensure seamless connection, transparency, and traceability.
Coordinating Minister for Food, Zulkifli Hasan, emphasized the government's commitment to ease national regulations to strengthen the investment ecosystem in Indonesia. He explained that the government is coordinating to improve nearly 35 regulations to make business process more simple, transparent, and free from sectoral egos, to encourage green economic growth.
Meanwhile, Chairperson of the Board of Commissioners of Indonesia Financial Services Authority (OJK), Friderica Widyasari Dew, stated that OJK is developing carbon-based financial products that can utilize cash flow from the sale of forestry carbon credits and agroforestry commodities.
OJK has also launched the Indonesian Sustainable Finance Taxonomy (TKBI) and developed a financing playbook as a concrete guide for pilot project-based financing. OJK also ensures that the developed financing structure must provide economic benefits for communities surrounding the forests.
Conclusion
The government launched the Indonesia Forestry Carbon Hub and granted approval for the issuance of carbon units under the Non-SPE GHG scheme to several forestry projects as a step to strengthen carbon market governance while supporting a green economy. In the initial phase, four pilot projects covering approximately 225,000 hectares received approval with the potential for emission reductions of approximately 30 million tons of CO2 equivalent, an economic transaction value of approximately Rp5 trillion, and potential PNBP of Rp500 billion.
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