Indonesia's President-elect Prabowo Subianto has announced plans to establish a green economy fund by selling carbon credits generated from environmental projects, such as rainforest preservation. The target for this initiative is to raise US$65 billion by 2028, which translates to approximately 1,000 trillion rupiah. To facilitate this effort, a new carbon emissions regulator will be created to oversee the carbon credit market and ensure project credibility [c4327aa6].
This initiative aligns with Indonesia's ongoing efforts to leverage its natural resources for economic growth while addressing climate change. The HGBT (certain natural gas prices) program, which has already shown significant economic benefits, will continue to support various industrial sectors, contributing nearly US$10 billion to the national economy and attracting substantial investments [4a676e42]. The HGBT program has been instrumental in enhancing the economic landscape by increasing export values and fostering industrial growth across seven key sectors, including fertilizer and petrochemicals [4a676e42].
Prabowo's administration will also focus on promoting international investment in these carbon credit projects, with road shows planned to attract global stakeholders. However, challenges remain, including competition in the global carbon markets and the need to maintain the credibility of the projects involved. Christina Ng from the Energy Shift Institute has noted that achieving the ambitious financial and operational targets will require careful planning and execution [c4327aa6].
In addition to the green fund initiative, Coordinating Minister for Maritime Affairs and Investment Luhut B. Pandjaitan has highlighted Indonesia's potential to generate 1.5 GT CO2 equivalent per year through Nature Based Solutions (NBS), which could yield around Rp112.5 trillion or US$7.1 billion from carbon sales. This initiative is part of a broader strategy to achieve Net Zero Emission (NZE) by 2060, with a focus on diversifying energy sources and optimizing renewable energy usage [2f772b33].