Jakarta (ANTARA) - Success in suppressing deforestation will significantly benefit Indonesia, as the accomplishment will provide abundant carbon credits and boost market players' trust in the country, Chief of the Presidential Staff Office (KSP), Moeldoko, stated on Friday.

"This trend will, in turn, help Indonesia with realizing its vision of becoming a prominent player in the global carbon market," he remarked in Jakarta.

Moeldoko noted that the government had been making all-out efforts to reduce deforestation.

Citing data from the Environment and Forestry Ministry, he said that in 2022, Indonesia's deforestation stood at only 40,400 hectares, a significant decline, from 101,400 hectares recorded in 2021. The latest figure is the lowest ever recorded in the last two decades.

"This demonstrates the government's efforts to protect forests and suppress deforestation have begun to pay off," he emphasized.

Moeldoko affirmed that carbon trading is one of the most important instruments for reducing the risks of climate change, adding that the trade has potential domestically and internationally.

"Hence, it is necessary to optimize trading on the (Indonesia) Carbon Exchange," he emphasized.

He further underscored that Indonesia is still facing numerous challenges in its efforts to make the most of carbon trade, such as incomplete regulations, including those related to foreign carbon trade and carbon tax.

"The Presidential Staff Office will coordinate with relevant ministries and agencies to deal with that matter," he stated.

Based on a report from the Financial Services Authority (OJK), since President Joko Widodo officially launched the Indonesia Carbon Exchange (IDXCarbon) on September 26 until November 2023, carbon trades amounted to Rp30.7 billion (US$1.9 million).

The value was generated through a total trade volume of 490,716 tons of carbon dioxide.

"We need to invest more significant efforts to boost the numbers. The KSP and OJK are ready to oversee the progress," Moeldoko affirmed.

Furthermore, he drew attention to the support provided by Norway to Indonesia in the latter's efforts to suppress deforestation.

At the World Climate Action Summit COP28 in Dubai on December 1, Indonesia received US$100 million from Norwegia under the result-based payment scheme for Indonesia's performance in reducing deforestation for the periods 2017-2018 and 2018-2019.

Indonesia will use the fund to further boost the capacity and resources required for implementing carbon trade, Moeldoko stated.

Earlier in October last year, Norwegia also gave US$56 million to Indonesia for the 2016-2017 period.

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Translator: Indra A, Tegar Nurfitra
Editor: Anton Santoso
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