Indonesia Implements Carbon Pricing in Agriculture to Boost Sustainability
Indonesia is advancing its carbon pricing strategy within the agricultural sector as part of its broader efforts to transition towards a low-emission and sustainable economy. Deputy Minister of Agriculture Sudaryono emphasized the sector's dual role as both a source of greenhouse gas emissions and a potential carbon sink through sustainable practices. The government has introduced Presidential Regulation Number 110 of 2025 to facilitate cross-sectoral carbon economic instruments, including in agriculture. This initiative aims to attract foreign investment by allowing global investors to purchase carbon credits from Indonesia, thereby financing low-carbon projects. The strategy aligns with Indonesia's Long-Term Strategy for Low Carbon and Climate Resilience 2050 and its Nationally Determined Contribution commitments, targeting a reduction of 10 million tons of CO2 equivalent emissions by 2030.