Enviro News Asia, Bali — Indonesia’s carbon market must be built on measurable climate action, credible evidence and strong governance rather than treated merely as a trading mechanism, Environment Minister and Head of the Environmental Control Agency (KLH/BPLH) Moh Jumhur Hidayat said.
Jumhur made the statement at the Indonesia Carbon and Biodiversity Summit 2026, themed “Indonesia’s Carbon Industry Architecture: From Climate Action to Credible Carbon Value,” in Bali on September 9, 2026.
He said carbon units should represent the outcome of concrete environmental action addressing real challenges, including emissions from economic activities, ecosystem degradation, inadequate waste management and pressure on forests, peatlands, coastal areas and marine ecosystems.
“Carbon is not the starting point; it is the result. The starting point is the real challenges we face,” Jumhur said.
He emphasized that Indonesia still needs economic growth to create jobs, strengthen industries and improve public welfare. However, economic development must progress alongside efforts to reduce emissions, protect ecosystems and strengthen resilience to climate change.
Data and Integrity as Market Foundations
Jumhur stressed that not every environmental activity could automatically be classified as a mitigation outcome capable of generating carbon units.
Each claimed emissions reduction must undergo measurement, reporting and verification to establish the validity and traceability of the mitigation results.
He said the credibility of Indonesia’s carbon market would depend on stronger governance covering regulations, institutional arrangements, data systems, measurement, reporting and verification (MRV), carbon registration and transaction oversight.
These systems are essential to ensure that every carbon unit has a clear record and to prevent double counting or multiple claims over the same mitigation outcome.
Linking Carbon Action with Biodiversity
Beyond emissions reductions, Jumhur emphasized the need to connect climate action with biodiversity protection.
Forests, peatlands, mangroves and marine ecosystems represent natural capital that maintains environmental balance while supporting the livelihoods of surrounding communities.
He said international investment and cooperation in the carbon sector should focus on activities that deliver measurable environmental benefits rather than simply pursuing the economic value of carbon units.
Indonesia, he added, remains open to technology development and investment that can strengthen climate action while protecting national interests.
The minister said the future of Indonesia’s carbon market should not be measured solely by the number of carbon units issued or the speed of transactions.
Instead, its success should be assessed through the quality of climate action, credibility of evidence, accountability of governance, ecosystem protection and the benefits delivered to communities.
Through the Indonesia Carbon and Biodiversity Summit 2026, KLH/BPLH is promoting cross-sector cooperation to develop a transparent and credible carbon ecosystem that supports Indonesia’s sustainable development goals. (*)
