Indonesia Engages Japan on Carbon Trading Potential and Benefits

Jakarta, Indonrsianpost.com – The Indonesian Forestry Entrepreneurs Association (APHI) is showcasing Indonesia’s carbon trading potential at the World Expo Osaka, Japan, aiming to highlight the country’s efforts in combating climate change. At a business forum attended by both public and private sector stakeholders, APHI introduced Indonesia’s flagship climate program, the Food and Land Use Coalition (FOLU) Net Sink 2030, which targets the forestry and land use sectors to become net emission absorbers by 2030.

Indroyono Soesilo, APHI’s general chairperson, emphasized that the FOLU program is Indonesia’s key framework for fulfilling its climate commitments and fostering a sustainable international carbon market. He also noted the launch of the Indonesian Carbon Exchange (IDX Carbon) as a significant step in Indonesia’s green economic transformation.

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The forum also discussed the Mutual Recognition Arrangement (MRA) between Indonesia and Japan, allowing for cross-country recognition of carbon certification, which could attract Japanese investment in nature-based carbon projects, such as peat restoration and mangrove rehabilitation. Agus Justianto, FOLU Net Sink 2030 advisor, urged Japan and the global community to invest in Indonesia’s climate solutions based on its tropical forests.

A memorandum of understanding (MoU) was signed between Indonesian business actors and Japanese partners, including projects focused on nature solutions and biodiversity protection. Indonesia also emphasized that mangroves absorb carbon at five times the rate of land ecosystems.

Didik Darmanto, director of the Indonesian Pavilion, affirmed that with stronger regulations and government support, Indonesia is ready to become a global leader in tropical forest-based carbon credits. He called the forum a starting point for new partnerships in building a low-carbon economy.

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In 2025, Indonesia will officially launch its international carbon market, with IDX Carbon facilitating domestic and international carbon credit trading. Strategic energy projects, such as the Gunung Wugul Mini-Hydro Power Plant and the New Natural Gas Power Plant, are expected to significantly reduce carbon emissions, contributing to the country’s climate mitigation efforts. (BL/ANTARA)