Indonesia's carbon market must drive real climate action: Minister

 Environment Minister Moh Jumhur Hidayat has emphasized that the development of Indonesia's carbon market must be rooted in real climate action, backed by credible evidence and high-integrity governance.

In a written statement confirmed on Thursday, Jumhur noted that carbon markets must not be viewed merely as a trading mechanism, but should serve as an instrument to bolster environmental recovery and benefit communities.

"Carbon is not the starting point; carbon is the outcome. The true starting point is the real challenges we face—from emissions generated by economic activities and ecosystem degradation to inadequate waste management and pressure on forests, peatlands, coastal areas, and marine ecosystems," Jumhur said.

He conveyed the statement at the Indonesia Carbon and Biodiversity Summit 2026 in Bali 

Minister Jumhur underscored that economic development must continue to create jobs, strengthen industry, and improve public welfare.

However, he added that growth must go hand in hand with efforts to curb emissions, protect ecosystems, and build resilience against climate change.

Beyond emission reductions, the minister emphasized the vital link between climate action and biodiversity protection. Ecosystems—including forests, peatlands, mangroves, and marine environments—represent natural assets essential for maintaining ecological balance and sustaining local livelihoods.

He stated that international carbon investment and cooperation must be directed toward action that yields tangible benefits to the environment, rather than simply chasing the financial value of carbon units.

In this regard, Indonesia is opening opportunities for technological development and investments that support climate action while safeguarding national interests.

According to him, the future of Indonesia's carbon market will not be defined merely by the volume of carbon credits issued or the speed of transactions.

Instead, it will depend on the quality of actions, the credibility of evidence, the accountability of governance, the protection of ecosystems, and the tangible benefits delivered to local communities.