Perpres on Carbon Credit Issued Next Month, Here's the Content

The Coordinating Maritime Affairs and Investment Minister, Luhut Binsar Pandjaitan, revealed that the draft presidential regulation (Perpres) on implementing carbon valuation or carbon credit had entered the finalization stage. “I am sure, early next month, we will be able to see the new presidential regulation on carbon credit,” he revealed at the virtual event of 9th Indonesia EBTKE ConEx 2020 on Wednesday (11/25).

Luhut explained that carbon credit is a market mechanism for carbon emission trading. It will help Indonesia to reduce greenhouse gas emissions. Following the Paris Agreement’s ratification in 2015, Indonesia is committed to reducing greenhouse gas emissions to 29 percent by 2030 and 41 percent with international support, including the Reduction Emission Deforestation and Degradation (REDD+) scheme. The commitment is the National Determination Contribution (NDC) of Indonesia to the world.

He also mentioned that Indonesia has a tremendous carbon pricing potential and “75-80 percent of the world’s carbon credit coming from Indonesia’s forests, mangroves, peatlands, seagrass beds, and coral reefs.” Luhut also revealed that Indonesia’s total area of ​​mangrove forests currently reached 3.31 million hectares or about 20 percent of the world’s mangrove forest. Mangrove forests in Indonesia can absorb around 950 tons of carbon emission per hectare or equal to 33 gigatons of carbon emissions for its entire area.