Jakarta, April 23, 2026. The Indonesian government is accelerating the operationalization of a "nesting" framework for the forest carbon market to open up opportunities for large-scale private investment. This strategic step aims to create high-integrity carbon transactions and ensure transparent emissions accountability at the national and international levels.
Technically, "nesting" is a system that aligns project-level (private sector) carbon activities into national or regional (jurisdictional) accounting systems. This is done to ensure there is no double counting, maintain transparency, and ensure environmental integrity is maintained in accordance with global standards.
The Director General of Sustainable Forest Management at the Ministry of Forestry, Laksmi Wijayanti, emphasized that clear regulations are crucial for creating predictable funding pathways for communities and forest managers.
"As a global leader in forest carbon, Indonesia is committed to delivering integrated solutions through credible nesting arrangements. This is not just about climate ambition, but about certainty for investors and tangible benefits for local communities," said Laksmi at a High-Level Dialogue titled "Unlocking Nesting Potential for High-Integrity Jurisdictional REDD+ Implementation and Carbon Markets in Indonesia," held in Jakarta on Wednesday (April 22, 2026).
This step aligns with Indonesia's ambitious FOLU Net Sink 2030 target, which projects a net sink of 140 million tons of CO2 equivalent. This target relies on reduced deforestation, mangrove restoration, and sustainable peatland management.
Riau Province has emerged as a key implementation platform with significant carbon stocks in its 3.5 million hectares of peatlands. Through the GREEN for Riau initiative, supported by the UN-REDD program and UK funding, the jurisdictional REDD+ scheme is beginning to be piloted.
The UK Special Representative for Nature, Ruth Davis, expressed her support for Indonesia's efforts. "The UK is proud to support the strengthening of conditions for a high-integrity carbon market capable of attracting sustainable private sector investment. Indonesia has the world's largest forest carbon opportunity," he said.
Echoing this sentiment, Norwegian Ambassador Rut Krüger Giverin emphasized the importance of credibility. "Clarifying the nesting issue is a crucial step in building long-term trust in Indonesia in the global carbon market," she added.
Although the regulatory foundation is considered strong, the main challenge ahead is the operational aspect. The private sector is still waiting for predictable rules of the game to make long-term investment decisions.
Regarding this, the UN Resident Coordinator in Indonesia, Gita Sabharwal, stated that the next phase will be determined by how effectively the policy is consistently implemented.
"Indonesia's progress will be closely monitored by neighboring countries, by buyers seeking high-integrity forest credits, and by the global community looking for climate leadership that produces concrete results," she said.
"Indonesia now has the opportunity to set a global standard for jurisdictional forest action, based on integrity, equity, and national ownership," she added.
The Director of Forest Utilization Business Development, Ilham, emphasized that this alignment will strengthen the path to achieving Indonesia's net-zero emissions target by 2060.
"Our challenge is no longer ambition, but rather operationalization on the ground so that emissions reduction results are measurable, transparent, and able to mobilize private financing on a large scale," Ilham concluded.
With the success of this nesting scheme, Indonesia has the opportunity to set a global standard for jurisdictional forestry actions that prioritize integrity, justice, and national sovereignty.
For further information: Director of Forest Utilization Business Development, Ilham
Responsible for this news: Head of the Bureau of Public Relations and Foreign Cooperation, Ministry of Forestry, Ristianto Pribadi