Indonesia Pushes Forestry Carbon Market to Global Investors

Indonesia has reaffirmed its ambition to become a major player in the global forestry carbon market, with Forestry Minister Raja Juli Antoni highlighting new opportunities for international investment during a business forum in New York.

Speaking at an event organised with the International Emissions Trading Association (IETA) and the Indonesia America Chamber of Commerce (IACC), the minister said the country is shifting towards a broader forest economy model that values carbon, biodiversity and environmental services alongside traditional timber production.

Indonesia is home to around 120 million hectares of tropical forests, which the government sees as a key foundation for attracting climate finance and expanding sustainable forestry businesses.

Central to the strategy is the recently issued Ministerial Regulation No. 6 of 2026, which establishes a clearer legal framework for generating, verifying and trading forestry carbon credits. The regulation applies across natural production forests, industrial plantations and social forestry areas, while also aligning Indonesia’s carbon market framework with international standards including the Paris Agreement’s Article 6 mechanisms.

The government believes the reforms will strengthen the credibility and competitiveness of Indonesian carbon credits in international markets.

Alongside carbon trading, Indonesia is also promoting a multi-business forestry model that allows concession holders to diversify revenues through activities such as non-timber forest products, ecotourism, environmental services and bioeconomy projects including biochar and biomass energy.

Officials say the approach is designed to improve the investment appeal of the forestry sector while supporting stronger environmental, social and governance (ESG) outcomes.

The government also reiterated its commitment to its FOLU Net Sink 2030 target, which aims to turn the forestry and land-use sector into a net carbon sink by the end of the decade.

Industry representatives attending the New York forum included major organisations from across the carbon and environmental markets sector, such as Bloomberg, Verra, S&P Global, Intercontinental Exchange and Xpansiv, reflecting growing international interest in Indonesia’s forestry carbon ambitions.