Indonesia's new government aims to establish a $65 billion green economy fund by 2028 through carbon credit sales from forest conservation projects. The initiative aims to boost sustainability efforts and drive economic growth.

In a significant step towards environmental sustainability, Indonesia’s President-elect Prabowo Subianto plans to establish a green economy fund by selling carbon emission credits from projects such as rainforest preservation, reforestation, and mangrove replanting. As exclusively reported by Reuters, the initiative is expected to raise $65 billion by 2028 and is set to position Indonesia as a leader in global climate efforts. Ferry Latuhihin, Prabowo’s climate policy adviser, emphasized that the government will form a new regulator to oversee these projects and ensure compliance with the Paris Agreement.

A special mission vehicle will manage the fund, channeling resources into large-scale carbon-offsetting projects, which will generate carbon credits to be sold both domestically and internationally. "We need to utilize our comparative advantage, which is the nature," said Latuhihin, highlighting Indonesia’s rich natural assets. The initiative is designed not only to contribute to global carbon neutrality but also to create significant job opportunities and help the economy grow by 8% during Prabowo's term.

Experts like Christina Ng from the Energy Shift Institute acknowledge Indonesia's potential in the carbon market, though some believe the goals are ambitious given the competitive landscape. However, with declining deforestation rates and the government’s commitment to international standards, there is optimism that Indonesia can tap into premium carbon markets. The government plans to collaborate with international banks and investors, promoting the fund globally to maximize its impact.

By capitalizing on Indonesia’s vast natural resources, the fund could play a critical role in the country’s journey toward carbon neutrality, while driving economic growth.