Enviro News Asia, Jakarta – Indonesia’s Ministry of Environment/Environmental Control Agency (KLH/BPLH) has called for stronger collaboration with environmental organizations to ensure that the country’s green transition delivers greater economic benefits to local communities while protecting natural ecosystems.
Environment Minister and Head of the Environmental Control Agency Moh Jumhur Hidayat made the remarks during a meeting with representatives of the Indonesian Forum for the Environment (WALHI) at the ministry’s headquarters in Jakarta on July 30.
The minister emphasized that Indonesia’s natural resources should no longer be exploited under development models that marginalize local communities. Instead, environmental conservation, economic development, and community welfare must become integrated objectives in future policies.
“I want local communities to receive the greatest benefits from development activities. This principle will be reflected in future regulations,” Jumhur said.
During the discussion, participants also highlighted Indonesia’s relatively low carbon trading prices, which currently range between US$3 and US$9 per tonne of carbon dioxide equivalent (tCO₂e). The minister noted that these prices remain significantly below those in several international markets, where carbon credits can reach around €80 or US$90 per tonne, while Singapore’s carbon pricing has reached approximately US$40 per tonne.
Jumhur questioned why Indonesia’s carbon credits continue to be traded at comparatively low prices and stressed the importance of increasing the country’s value capture from carbon markets.
“We need to understand why our carbon prices remain so low. Indonesia should ensure that it receives fair economic value from its own carbon assets rather than allowing others to buy them cheaply and sell them at much higher prices internationally,” he said.
As an example of future opportunities, the minister referred to a recent visit to Kubu Raya Regency, where local communities manage approximately 100,000 hectares of mangrove forests that have attracted investor interest for carbon trading projects. He said the ministry is overseeing the initiative to ensure transparency and accountability.
At the same time, Jumhur cautioned that large financial inflows from carbon investments should be managed carefully to avoid negative social impacts. He encouraged communities to channel revenues into productive and sustainable economic activities, including cooperatives, small and medium-sized enterprises, and mangrove-based ecotourism.
The minister also expressed appreciation for WALHI’s environmental advocacy and described the organization as a strategic partner in advancing Indonesia’s environmental agenda.
According to Jumhur, the ministry’s environmental strategy now rests on three pillars: mitigation, adaptation, and prosperity, with the latter emphasizing improved welfare for communities living around natural resource areas.
He said the global economy is moving away from conventional development models that prioritize resource extraction toward a new development paradigm in which carbon markets and biodiversity conservation can generate significant economic value while restoring ecosystems.
As part of this transition, the government is promoting a national Ecological Repentance Movement, encouraging collective responsibility for environmental degradation and stronger commitments to ecosystem restoration.
“We are all responsible for ecological degradation, and therefore we must embrace ecological repentance. The ministry supports everyone committed to environmental protection, especially organizations such as WALHI. We hope this collective commitment will lead to a healthier environment in the future,” Jumhur said.
The ministry stated that its partnership with WALHI demonstrates the importance of collaboration between government and civil society to advance ecological restoration while ensuring that environmental protection is accompanied by equitable economic opportunities and improved livelihoods for local communities. (*)
