Carbon Trade, Indonesia’s New Lucrative Business, Some Concession Holders Start Looking For Investors

Indonesia Carbon trade business welcoming investors


The Indonesian government is now in finalize preparing a presidential regulation as the legal basis for carbon trading. The Indonesian government talks about the potential revenue from carbon trading. Various regulations to support the realization of this application are currently being discussed. The Ministry of Environment and Forestry (KLHK) projects an additional revenue of Rp 350 trillion through the sale and purchase of carbon credits. This is because the peatlands and forests owned by Indonesia as carbon sinks have a very wide scope. Indonesia is very rich of green forest.


Carbon trade is a compensation provided by industrialized countries (carbon producers) to pay for environmental damage due to carbon dioxide (CO2) smoke to forest-owning countries (carbon sinks). The carbon trading mechanism has become a solution in several countries in reducing greenhouse gas emissions.


The Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan previously mentioned that Indonesia has the potential to become a superpower without carbon emissions. This is due to its large potential in renewable energy resources. Advertisement “Indonesia has 7.5 million hectares of peatland, 3.1 million hectares of mangrove, and 180 million hectares of forest that contribute to the absorption of world carbon gas,” Luhut said some time ago.


The Indonesian government is currently exploring opportunities to find buyers in the carbon trading business. These potential markets are in the United States (US), Europe, China, and Vietnam, which have limited forest area. The carbon-neutral aviation fuel made from sunlight and air Last July, the Minister of Environment and Forestry, Siti Nurbaya, said that a presidential regulation or Presidential Regulation as the legal basis for carbon trading is targeted to be completed by August this year.


The Presidential Regulation on carbon trading has been drafted since 2019. Currently, the draft regulation is being discussed at the Cabinet Secretariat and Ministry of State Secretariat levels. The draft Perpres will soon be brought to the Ministry of Law and Human Rights for discussion between ministries. “The process has long been prepared,” said Siti Nurbaya some time ago. Siti said the regulation would regulate three schemes in carbon trading, namely cap and trade, result based payment (RBP), as well as carbon offsets. The tax on carbon has not been included in the Presidential Regulation because the determination of the tax on carbon must be based on the mandate of the law.


What is certain, all people are very confident that the realization of the carbon trade business is only a matter of time. Everyone is sure that this business will start soon because many global buyers are also waiting. Moreover, Indonesia is indeed rich in green forest assets and peat forests.


A number of entrepreneurs related to the author are also currently preparing to work on this carbon trade business because they already have forest management concessions and only need to take care of a few more permits as a requirement. They have forest concessions ranging from 30 thousand hectares, 35 thousand hectares to 50 thousand hectares. Carbon trade is good business due to it will drive to save forest and green environment in the world. That is very good for our earth. 


For foreign investors who are interested to do the business in Indonesia and keen to invest into the carbon trade business and becoming an equity partner, please contact me, so I can introduce you to my entrepreneurs who are working on this carbon trade business.


Thank much. Regard


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