Indonesia to direct carbon market fund to farmers, coastal communities
Jakarta (ANTARA) - Indonesia is directing its expanding carbon market framework toward rural communities, aiming to ensure that carbon revenues directly benefit farmers, fishers, and coastal workers engaged in environmental conservation and emission reduction efforts.
”Agriculture and blue carbon are the next frontier; this means carbon financing will extend to farmers, fishers, and coastal communities—not just large corporations," Coordinating Minister for Food Affairs Zulkifli Hasan remarked at the Indonesia Sustainability Forum (ISF) 2026 in Jakarta, Tuesday.
Hasan, who chairs the Carbon Economic Value (NEK) Steering Committee, explained that carbon economic mechanisms serve as an instrument to assign direct monetary value to environmental preservation while channeling financial benefits to grassroots community managers.
Indonesia's annual carbon market potential is estimated to reach US$7.7 billion. The national carbon ecosystem is governed under Presidential Regulation No. 110 of 2025 on Carbon Economic Value, supported by six implementing regulations and the Carbon Unit Registry System (SRUK).
The market framework incorporates carbon trading, carbon taxation, and result-based payments.
To date, the government has issued registered carbon units for four forestry projects, representing an emission reduction capacity of approximately 30 million tons of CO2 equivalent.
These four projects carry an estimated total transaction value of Rp5 trillion (approximately US$279.3 million) and have the potential to generate Rp500 billion (US$27.9 million) in non-tax state revenue.
Hasan stressed that carbon market development must prioritize inclusivity, ensuring that localized agricultural and coastal conservation activities generate tangible economic improvements for rural populations.
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Translator: Shofi Ayudiana, Yashinta Difa
Editor: Azis Kurmala
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