Climate BLUD Opens Regional Financing Opportunities, Carbon Rights Are Not Automatically Attached

GARISBUMI.com – JAKARTA, GARISBUMI.COM | The Ministry of Forestry encourages strengthening the Regional Public Service Agency (BLUD) for Climate Management to expand financing for climate action in the regions. However, the implementation of BLUD does not automatically provide carbon rights in all local government administrative areas.

Clarity on carbon rights, benefit sharing, and community protection are important parts of developing these services. Revenue opportunities also need to be taken into account along with activity costs, monitoring, certification and the risk of changes in carbon prices.

This emerged at the BLUD Coordination Meeting held by the Directorate General of Regional Financial Development of the Ministry of Home Affairs in Jakarta, Monday (26/10/2026). The meeting also launched guidelines for preparing administrative documents for implementing BLUD, including for handling climate through carbon management.

Main Advisor to the Minister of Forestry, Edo Mahendra, said that forestry potential needs to be managed so that ecological, economic and social benefits go hand in hand.

"This is where the Climate Management BLUD has a vital role, namely supporting the provision of services and program implementation, as well as strengthening collaboration in value creation in the forestry sector," said Edo, as quoted from a statement from the Ministry of Forestry.

Carbon services must be within authority

Based on the Ministry of Home Affairs' explanation summarized in the statement, BLUD services can include providing carbon data and information, technical assistance, and implementing emission reduction activities according to authority.