Minister of Environment, Mohammad Jumhur Hidayat, issued a stern warning that carbon credit trading schemes, particularly through coastal mangrove rehabilitation programs, must strictly adhere to the principles of integrity. He stressed that carbon market mechanisms must not be misused as a playground for speculation by business operators solely for profit.
Jumhur made the statement while inspecting a mangrove seedling planting initiative on the coast of Labuan Alas, Sumbawa Regency, West Nusa Tenggara, on Tuesday (7/7/2026). He explained that the carbon market is a crucial instrument for curbing greenhouse gas emissions while simultaneously unlocking potential new state revenues.
Given the enormous cost required for Indonesia to reach its emission reduction targets—ranging from IDR 4,000 to 5,000 trillion—the government is encouraging private sector involvement through compensation schemes. High-emitting companies are expected to fund the rehabilitation of forests and mangroves, which will later be converted into carbon credits.
Nevertheless, the government emphasizes that social impact must remain the top priority. Investors are urged to actively involve local residents in the planting and maintenance of mangroves. This practice is expected to create environmentally friendly employment opportunities or green jobs that enhance the welfare of local communities on the ground.
"In mitigating climate change, local communities on the ground must be the primary beneficiaries," Jumhur concluded regarding the government's commitment to maintaining ecosystem sustainability while ensuring economic justice for coastal residents.
