The Minister of Environment, Mohammad Jumhur Hidayat, issued a stern warning regarding the implementation of the carbon market in Indonesia. During his visit to Sumbawa, West Nusa Tenggara, on Tuesday (7/7/2026), he emphasized that carbon credit trading schemes, especially through mangrove rehabilitation programs, must not be misused as a speculative arena by certain parties.
The government realizes that climate change mitigation efforts and reducing greenhouse gas emissions require fantastic funding, approximately IDR 4,000 to IDR 5,000 trillion. Given the magnitude of this value, the financing burden cannot be fully borne by the state budget, making the involvement of the private sector through the carbon market mechanism a crucial strategic step.
Under this mechanism, high-emitting companies are required to compensate by funding the rehabilitation of ecosystems such as forests and mangroves. Besides being a mitigation step, the government emphasizes the importance of supporting local communities. Investors are encouraged to involve local residents in the planting and maintenance process, thereby creating environmentally friendly jobs or green jobs.
Minister Jumhur emphasized that the main benefits of this program must be felt directly by the communities living around the rehabilitation areas. Thus, carbon trading is expected to not only be an emission reduction instrument, but also a driver of a sustainable economy that provides a real impact on both the ecosystem and the welfare of residents at the project site.
