Indonesia expands forest carbon market to include community and indigenous groups

In a statement released in Kupang, East Nusa Tenggara, the forestry ministry announced that the Bujang Raba Landscape social forestry group is the first community entity authorized to trade forest carbon credits. The move required regulatory updates that temporarily halted trading in 2021, with the new framework unveiled at the Indonesia Forestry Carbon Hub launch on July 6, 2026. Officials cited Bujang Raba as an example of how empowered villages can improve wildfire prevention across Kalimantan and South Sumatra.

A forthcoming village-based National Peatland and Mangrove Management Agency will partner with local fire-aware groups, while the ministry's enforcement division will resume joint patrols to deter illegal forest activities. The initiative aims to ensure carbon benefits reach indigenous peoples and forest villages rather than large concession holders.