Indonesia expands forest carbon market to boost green growth

Indonesia is expanding forest carbon trading to support its emissions targets, increase community participation and strengthen its position in global carbon markets. The government has approved forestry carbon units issued by international institutions for carbon trading, supporting the carbon-pricing framework announced at COP30 in 2025. Its forestry strategy includes rehabilitating 12.3 million hectares of degraded land and forests, sustainably managing 48.9 million hectares of production and protected forests, and strengthening 8.3 million hectares of social forestry. Indonesian forests could potentially generate 13.4 billion tons of carbon dioxide equivalent in carbon credits between 2024 and 2050. The policy also enables social forestry groups, including Indigenous communities, to participate in carbon markets and create new income opportunities while supporting Indonesia’s NDC and FOLU Net Sink 2030 targets.
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