Carbon trading not for business speculation: Environment Minister

hartono · Jul 7, 2026

Carbon trading not for business speculation: Environment Minister

Residents plant mangrove saplings along the coast of Labuan Alas in Sumbawa District, West Nusa Tenggara, on Tuesday (July 7, 2026). ANTARA/Sugiharto Purnama

Sumbawa, W Nusa Tenggara (ANTARA) - Environment Minister Mohammad Jumhur Hidayat has stressed that carbon credit trading through coastal mangrove rehabilitation programs must not turn into a playground for business speculation.

"The Indonesian government urges that carbon trading should not become a speculative venture for businesses," he told the press after a mangrove planting event in Sumbawa, West Nusa Tenggara, on Tuesday.

The carbon market is seen as a key solution to reducing greenhouse gas emissions through the trading of carbon credits, which also offers a potential new source of revenue.

According to Jumhur, Indonesia requires an estimated US$286 billion in funding to achieve its emission reduction targets, making it impossible for the state budget to fully cover the costs.

The Indonesian government has opened doors for private sector involvement through carbon market mechanisms, allowing companies to participate in greenhouse gas reduction efforts to mitigate climate change.

High-emitting companies or entities can offset their emissions by funding the rehabilitation of mangroves or forests, which in turn generates carbon credits.

"Those who emit high levels of pollution must offset it by supporting vegetation growth," he remarked.

The minister further said that carbon trading schemes must provide tangible benefits to communities living around the rehabilitation areas, in addition to supporting efforts to reduce carbon emissions.

Investors can involve local communities in mangrove planting and maintenance activities, thereby simultaneously creating environmentally friendly employment or green jobs.

"In mitigating climate change, the grassroots communities must be the primary beneficiaries," Minister Jumhur said.