The Ministry of Environment (KLH) has urged all regional governments (pemda) in Indonesia to increase their understanding of carbon trading business mechanisms, particularly those derived from waste management. This step is considered crucial to prevent regional governments from getting trapped in cooperation agreements with foreign parties that could potentially disadvantage the regions.
Minister of Environment, Mohammad Jumhur Hidayat, delivered the warning on the sidelines of his working visit to the West Sumatra Maritime Polytechnic area, Padang Pariaman Regency. According to him, regional governments' lack of understanding regarding the economic value of carbon is often exploited by foreign investors to reap huge profits without providing fair returns to the regions.
Jumhur explained that the largest carbon potential at the regional level is actually stored in waste management at landfills (TPA). Using bio-membrane technology, methane gas produced from waste decomposition can be converted into energy. This emission reduction can later be claimed and traded internationally through the Indonesian Emission Reduction Certificate (SPEI) scheme.
Citing the success of the Integrated Waste Management Site (TPST) Bantargebang in Bekasi, which generated hundreds of billions of rupiah in revenue, KLH is now moving swiftly. The agency has instructed the relevant deputy offices to hold national training for regional officials so they can negotiate independently and optimize Regional Original Revenue (PAD).
Meanwhile, the Governor of West Sumatra, Mahyeldi, confirmed the high interest from foreign investors in waste management in his region. However, he stressed the importance of being selective, as some offers were deemed unreasonable, including conditions requiring permission to import waste from other countries into West Sumatra.
