Antara News·Indonesia·Tuesday, October 13, 2026 at 06:57 AM UTC

Indonesia seeks greater community benefits from carbon trading

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Tri Meilani, Tegar Nurfitra

Jakarta (ANTARA) - The government is determined to ensure that carbon trading generates significant economic benefits for local communities, especially those actively involved in environmental restoration efforts, Indonesian Environment Minister Jumhur Hidayat said.

He underscored the importance of enabling grassroots communities, indigenous peoples, and local residents to reap economic gains from carbon trading during a technical guidance session on carbon economic value and climate-resilient low-carbon development for regional leaders in Jakarta on Tuesday.

Hidayat stressed that the government is working to ensure that carbon trading creates opportunities not only for major investors but also for residents directly connected to natural ecosystems that require restoration and conservation.

The minister noted that the extent of benefits received by communities could serve as a measure of the integrity of carbon trading activities in Indonesia.

He further emphasized that the equitable distribution of economic benefits is one of the key indicators of a high-integrity carbon market.

For example, he pointed to the economic potential of mangrove restoration, which can absorb around 3,000 tons of carbon dioxide equivalent per hectare annually.

Assuming each carbon credit is valued at between US$50 and US$60, he added, a hectare of mangroves could generate an estimated value of around US$150,000.

He went on to say that a mangrove restoration project could also help strengthen community empowerment efforts, as it would typically require workers over a period of three to four years.

Hidayat described the carbon economy as a more responsible development approach, stressing the need to move away from conventional models that often drive economic growth at the expense of environmental sustainability and social equity.

The government, he added, views the new approach as a way to position carbon trading as a scheme that supports environmental restoration while generating tangible economic benefits for local communities.

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