The Indonesian government is actively promoting the Economic Value of Carbon (NEK) as a key strategy to address the challenges of the global climate crisis. However, this grand ambition has drawn sharp criticism from various civil society groups. Forest Watch Indonesia (FWI) notes that amidst the narrative of climate salvation, deforestation in the country continues, with a total loss of 2.7 million hectares of natural forest during the 2020 to 2024 period.
The main criticism stems from indications of 'sin washing' or greenwashing by corporations. Data shows that the majority of companies holding forest utilization business permits in the carbon business scheme are long-time players with poor environmental track records. Tsabit Khairul Auni from FWI refers to this phenomenon as a 'bandwagon' effect or FOMO (fear of missing out) by tycoons who actually carry heavy emission burdens, yet are now given the red carpet to control carbon concessions.
The issue becomes even more complex with the low price of carbon credits in Indonesia, which ranges from IDR 30,000 to IDR 58,800 per ton. It is feared that this price, which is far below international standards, will make corporations prefer to buy carbon credits as a shortcut instead of transitioning to more environmentally friendly technologies. This creates a paradox where companies that have historically contributed to forest destruction actually benefit financially from emissions trading.
In addition to environmental threats, the social justice aspect is under crucial spotlight. FWI found land overlaps of 1.9 million hectares between indigenous territories and carbon projects. Many local communities do not receive adequate information, or in the local term 'jualan angin' (selling wind), even though their access to forests is restricted to preserve carbon stocks. This practice sparks fears of massive land grabbing (land grabbing) in various regions, such as Kalimantan and the Aru Islands.
On the other side, the government, through the Ministry of Environment, emphasizes that the Carbon Unit Registry System (SRUK) has been prepared to ensure data transparency. Wahyu Marjaka from the Ministry of Environment stated that climate justice and benefit-sharing mechanisms for local communities are priorities in the regulatory framework currently being finalized. However, experts such as Riko Wahyudi from RCCC-UI warn that the carbon market should only be seen as a funding instrument, not a single mitigation solution. Without strong data integrity and policy synchronization, Indonesia's carbon claims risk not being recognized by the international community.
