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carbon trading regulation, describing it as a major step toward This includes benefit-sharing mechanisms for local
strengthening the country’s carbon market and accelerating communities so that profits from carbon trading are distributed
the green economy. more broadly, as well as ensuring biodiversity conservation
During a forum in Jakarta discussing the regulation’s and ecosystem protection in project areas.
implications, representatives from the government, the
Indonesian Chamber of Commerce and Industry and carbon Studies to strengthen anti-corruption measures in the

project developers said the policy provides greater certainty forestry sector
for the forestry carbon sector. Indonesia’s Corruption Eradication Commission (KPK) is
Business leaders emphasised that the success of Indonesia’s conducting two studies to strengthen corruption prevention
carbon market will depend on strong coordination and trust in the country’s forestry sector, focusing on corruption risks
among stakeholders. in forest product trade and downstream processing, as well
The regulation introduces clearer project developer criteria, as vulnerabilities in the governance of forest area allocation
carbon credit issuance procedures, participation mechanisms procedures.
for international markets and stronger environmental and The initiative was launched due to the sector’s high strategic
social safeguards. and economic value which KPK Deputy for Prevention and

However, industry players also urged the government to Monitoring, Aminuddin, said requires transparent, accountable
quickly issue implementing rules on project risk management and integrity-based management.
and long-term investment certainty to encourage greater green He emphasised that the KPK’s role extends beyond
investment in Indonesia. law enforcement to supporting systemic improvements in
In related news, the Association of Indonesia Forest corruption prevention.
Concession Holders (APHI) plans to expand forestry carbon To carry out the studies the KPK is collaborating with the
projects by utilising 16–17 million hectares of natural forest Ministry of Forestry, Ministry of Industry and Ministry of Trade

within its concession areas, beyond the 16 carbon project on efforts focused on integrating data, aligning policies and
pipelines it currently manages. strengthening supervision across the forestry supply chain.
Purwadi Soeprihanto said the initiative is part of APHI’s Aminuddin stated that the collaboration is intended to
response to the issuance of Minister of Forestry Regulation improve regulations, oversight effectiveness and information
No. 6/2026 which regulates carbon trading through greenhouse system integration throughout the sector.
gas emission offsets in the forestry sector. The studies are expected to be completed in 2026 and
He explained that some concession areas will continue
to be used for timber production, while others have strong rusak
potential for carbon credit development.

Purwadi expressed optimism that forestry carbon trading
could generate circular economic benefits for Indonesia’s
timber industry, provided the resulting carbon credits remain
competitive in the market.
He emphasised that carbon projects should not only focus
on generating carbon units, but also on delivering social and
environmental benefits.