Indonesia’s Ministry of Forestry has officially guaranteed that all carbon trading activities within its forestry sector will exclude areas currently subject to conflict with surrounding communities. This commitment was made public on Friday by the Director of Forest Utilization Business Development, Ilham, during a meeting focused on the carbon market ecosystem development. The ministry is presently working on a revision of Ministerial Regulation No. 7 of 2023, which governs Carbon Economic Value Governance in the Forestry Sector.

This revision is designed to establish comprehensive Standard Operating Procedures (SOPs) for participation in the voluntary carbon market. Ilham stressed the necessity of these SOPs, stating, “Without technical assessment, there is a risk that carbon credits from forest utilization permits (PBPH), social forestry, or conservation areas (KSDAE) could be linked to conflicts with local communities or even fraudulent activities.” He further emphasized the government’s rigorous approach, adding that technical assessments would be strict and that no project showing signs of fraud or potential harm to communities would be approved. The inclusion of these technical considerations in the revised regulation is aimed at preventing deception that could damage the state and erode confidence in the integrity of Indonesia’s carbon market.

The government also intends to open the forestry sector to the globally more stable voluntary carbon market. This strategic move, which is expected to attract greater investment, will necessitate revisions to Presidential Regulation No. 98 of 2021. The regulation, which covers the implementation of carbon economic value for achieving Nationally Determined Contribution (NDC) targets and controlling greenhouse gas emissions in national development, is currently under the revision process to accommodate this expansion. The focus on high-integrity credits, including through methods like sustainable biomassBiomass is a complex biological organic or non-organic solid product derived from living or recently living organism and available naturally. Various types of wastes such as animal manure, waste paper, sludge and many industrial wastes are also treated as biomass because like natural biomass these More and biocharBiochar is a carbon-rich material created from biomass decomposition in low-oxygen conditions. It has important applications in environmental remediation, soil improvement, agriculture, carbon sequestration, energy storage, and sustainable materials, promoting efficiency and reducing waste in various contexts while addressing climate change challenges. More production, will be crucial as Indonesia positions its natural assets in the international market.

SOURCE: Gov’t ensures forestry carbon trade free from community conflicts