Indonesia is leveraging the momentum of World Expo 2025 in Osaka to offer forest-based carbon investment opportunities to the global community.
In a presentation delivered by Dr. Agus Justianto, Advisor to the Indonesian FOLU Net Sink 2030 Working Team, during the Business Forum on Forest Carbon Trade at the Indonesian Pavilion, World Expo 2025 Osaka, Friday, May, 9 2025.
Indonesia opened significant opportunities for international investment in forest-based carbon trading.
FOLU Net Sink 2030 targets Indonesia’s forestry sector to absorb more greenhouse gas emissions than it emits by 2030.
With an emission reduction target of up to 140 million tons of CO₂e by that year, this initiative has become the backbone of Indonesia’s national contribution to the Paris Agreement.
According to Agus, the FOLU Net Sink agenda has now evolved beyond merely being a climate policy to become a national sustainable development platform.
“FOLU Net Sink 2030 is a blueprint for transforming Indonesia’s land governance that connects environmental protection, economic growth, and community empowerment,” said Agus at the business forum, which was organized collaboratively by the Embassy of the Republic of Indonesia in Tokyo and the Association of Indonesian Forest Concessionaires (APHI), and attended by stakeholders from both public and private sectors from Indonesia and Japan.
On this occasion, Agus explained the significant opportunities for Japan’s involvement in supporting FOLU Net Sink.
With the existing Mutual Recognition Arrangement (MRA) between Indonesia and Japan, Indonesian Emission Reduction Certificates (SPEI) are now recognized in Japan’s Joint Crediting Mechanism (JCM) scheme.
This enables cross-border carbon trading and increases investor confidence in Indonesian carbon projects.
“This cooperation opens the way for Japanese companies to purchase carbon credits from Indonesian forests to meet their carbon neutrality targets, while strengthening the position of both countries in global climate diplomacy,” Agus explained.
Various investment sectors were also highlighted, including the restoration of 13 million hectares of peatlands, rehabilitation of 600 thousand hectares of mangroves, and the development of social forestry covering more than 6 million hectares.
Other opportunities include the development of digital-based emission monitoring systems, the use of Japanese technology in MRV (Measurement, Reporting, Verification) systems, and funding through green bonds and blended financing schemes.
Indonesia has also strengthened its legal and institutional foundation for carbon trading, including the launch of the Indonesia Carbon Exchange (IDXCarbon) and the National Registry System.
Two main approaches offered are the Emissions Trading System (ETS) and Offset Mechanism, with credits derived from real actions such as reforestation, mangrove restoration, and sustainable forest management.
Agus also explained that the Indonesian Government aims for the generated carbon credits to meet international standards such as VERRA and Gold Standard, with benefit-sharing mechanisms that ensure local communities receive direct benefits from carbon trading.
World Expo 2025 in Osaka has become a venue for Indonesia to invite Japan and the global community to move from intention to real action.
“This is not just a carbon transaction, but a strategic alliance for an inclusive and resilient low-carbon future,” Agus concluded. *
