Jakarta, Indonesia Sentinel — Minister of Forestry Raja Juli Antoni said that Indonesia total tradable carbon credit potential by 2050 could reach 13.4 billion tons of CO₂ equivalent. He projected that the opportunity could becomes a major source of economic growth.
If monetized, the minister said, the credits could generate between Rp41.7 trillion and Rp127.98 trillion ($8–25 billion) annually, depending on global carbon prices.
“If these credits are traded at $5 per ton of CO₂, the economic value could reach around Rp41.7 trillion per year. At $15 per ton, it could rise to Rp127.98 trillion,” Raja Juli told reporters in Jakarta.
Earlier this year, President Prabowo Subianto signed Presidential Regulation No. 110 of 2025 on the Implementation of Carbon Economic Value Instruments and National Greenhouse Gas Emission Control. The regulation provides the legal framework for Indonesia’s carbon economy as the country seeks to meet its Nationally Determined Contribution (NDC) under global climate commitments.
Despite the potential, Raja Juli acknowledged that Indonesia’s carbon market has remained sluggish since the Indonesia Carbon Exchange was launched on September 26, 2023. The government, he said, is now refining regulations to ensure the market operates effectively and benefits both the national NDC targets and local communities.
He noted that President Prabowo’s reforestation initiative, which aims to restore 12 million hectares of degraded land, could become a major source of carbon credits. Meanwhile, the social forestry program, covering 8.3 million hectares, also offers dual benefits — improving livelihoods and generating tradable carbon assets.
“Farmers can earn from agricultural products within forest areas, while the trees they grow also generate carbon credits,” he said.
The minister added that Indonesia’s carbon market strategy will be a key topic at upcoming international meetings in Brazil in early November. President Prabowo has appointed him to represent Indonesia at the UN Climate Change Conference (COP30) in Belém, Brazil, from November 6–7, 2025, where Indonesia will deliver its national statement outlining its climate commitments.
Following the summit, the Indonesian delegation will host a green investment roundtable in São Paulo on November 8, aimed at attracting potential investors in the sustainable sector.
During the visit, Raja Juli is also expected to sign a memorandum of understanding (MoU) with the Integrity Council for the Voluntary Carbon Market (ICVCM) to strengthen transparency and trust in Indonesia’s carbon market.
“This MoU will help us maintain the integrity of our carbon assets — preventing carbon leakage and greenwashing,” he said. “It ensures that the work done by our social forestry farmers has credible economic value. This is what we call green investment.”
