carbon trading Opens Economic Opportunities for Forest Residents, Approval Exceeds 31.7 Million Tons

Rohmat explained that the government continues to strengthen the carbon trading policy framework in the forestry sector. The basis for this includes Presidential Regulation Number 110 of 2025 concerning Implementation of Carbon Economic Value Instruments and Control of Greenhouse Gas Emissions, which is followed up by Minister of Forestry Regulation Number 6 of 2026 concerning Procedures for carbon trading in the Forestry Sector.

According to the presentation, this policy opens up opportunities for carbon trading, including through the voluntary carbon market. The private sector, Social Forestry Business Groups (KUPS), community forest farmers and customary law communities can access the scheme according to the provisions.

With strong governance and maintained environmental integrity, carbon trading is expected to open up financing for protection, restoration and sustainable forest management.

Apart from carbon, Rohmat highlighted the economic opportunities from non-timber forest products, such as essential oils, honey and medicinal plants. Other potential includes agroforestry, ecotourism, bioprospecting, and various environmental services.

The development of diverse sources of income is expected to expand economic benefits for residents around the forest while protecting the ecosystem. Wood commodities remain part of the forestry economy, alongside other sources of value that are managed sustainably and can be traced.

Rohmat also emphasized that forests have social and cultural functions, in addition to economic and ecological functions. Its role includes maintaining water management, controlling disaster risks, absorbing carbon and preserving biodiversity.

To support this transformation, the Ministry of Forestry needs collaboration with universities, including the Faculty of Forestry UGM and its alumni.