Indonesia to direct carbon market funds to farmers and fishers

Indonesia is expanding its carbon market framework to ensure financial benefits reach farmers, fishers, and coastal communities rather than solely benefiting large corporations. Speaking at the Indonesia Sustainability Forum (ISF) 2026 in Jakarta, Coordinating Minister for Food Affairs Zulkifli Hasan stated that agriculture and blue carbon represent the next frontier for carbon financing.

The government is developing a carbon ecosystem through carbon trading, carbon taxation, and result-based payments, governed by Presidential Regulation No. 110 of 2025. Indonesia's annual carbon market potential is estimated at US$7.7 billion.

Currently, the government has issued carbon units for four forestry projects with an emission reduction capacity of approximately 30 million tons of CO2 equivalent. These projects have an estimated transaction value of Rp5 trillion and could generate Rp500 billion in non-tax state revenue.