The Indonesian government has firmly warned industry players not to turn the carbon trading scheme into a mere tool for business speculation. This statement was made directly by the Minister of Environment, Mohammad Jumhur Hidayat, on the sidelines of mangrove rehabilitation activities in Labuan Alas, Sumbawa Regency, West Nusa Tenggara, on Tuesday (7/7/2026).
The funding required to reduce greenhouse gas emissions in Indonesia reaches a fantastic figure, namely around 286 billion US dollars or equivalent to IDR 4,000 to IDR 5,000 trillion. Jumhur emphasized that it is impossible to rely solely on the state budget for such a massive financing burden, making the involvement of the private sector through the carbon market mechanism a strategic necessity.
Under this mechanism, high-emitting companies are required to compensate by funding ecosystem rehabilitation, such as replanting mangrove forests. This step is projected to not only serve as a climate change mitigation solution, but also open up opportunities for the creation of green jobs for local communities.
The government emphasized that the success of this program must culminate in the welfare of the people at the rehabilitation sites. Investors are encouraged to actively involve local residents in the planting and maintenance processes of the areas. In this way, carbon trading is expected to provide real economic benefits while maintaining environmental sustainability for the future.
