The absence of regulations and standardized measurements to assess carbon value from the ocean remains a key issue preventing Indonesia from participating in international carbon trading schemes. This is despite the country’s immense potential carbon value, given its vast areas of mangroves and seagrass meadows.
“There’s still no roadmap for blue carbon in coastal areas under the jurisdiction of the Ministry of Marine Affairs and Fisheries of Indonesia (KKP),” said Aji W. Anggoro, Blue Carbon Manager at the Yayasan Konservasi Alam Nusantara (YKAN). He made the statement during the Science Discussion at Medan Merdeka event titled The Economic Value of Blue Carbon and Indonesia’s Leadership, held in Jakarta on Tuesday (October 12, 2025).
The absence of such a roadmap has hindered further assessments of carbon absorption potential or prevention of carbon emissions in coastal regions. These assessments are crucial to establish the basis for financing through international carbon markets.
According to Anggoro, Indonesia’s coastal areas have strong potential for preventing carbon emissions. YKAN has already conducted preliminary assessments in several regions, including Bangka Belitung, Ogan Komering Ilir, Bengkalis, and East Kalimantan. These assessments evaluate the conservation potential and prevention of carbon release within mangrove and seagrass ecosystems.
This view was shared by Haryo Pambudi from Indonesia’s Ministry of Environment (KLH). He explained that carbon financing opportunities from carbon conservation or emission reduction could be achieved through the Forestry and Other Land Use (FOLU) scheme.
“The Ministry of Marine Affairs and Fisheries has yet to issue regulations for blue carbon,” Haryo emphasized.
Due to this regulatory gap, the Ministry of Environment has not yet proposed coastal carbon financing within international carbon markets. Currently, only the forestry sector has been submitted for financing under the Reducing Emissions from Deforestation and Degradation (REDD+) scheme.
However, Haryo added that carbon financing under FOLU remains possible through both unplanned deforestation and planned deforestation mechanisms. This means blue carbon financing could proceed through conservation and emission prevention initiatives in coastal areas.
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As previously mentioned, Indonesia holds tremendous potential in blue carbon, given that its coastline is the second longest in the world after Canada. In his opening remarks, Daniel Murdiyarso, Chairman of the Indonesian Academy of Sciences (AIPI), explained that Indonesia possesses rich coastal ecosystems, including seagrass meadows and mangrove forests. These ecosystems store blue carbon that plays a vital role in climate change mitigation and adaptation efforts.
Beyond their ecological functions, blue carbon resources also have significant economic value. Carbon trading and ecosystem service schemes provide new opportunities to support sustainable development. The conservation and restoration of blue carbon ecosystems not only contribute to climate mitigation and adaptation but also deliver co-benefits such as preserving biodiversity, enhancing fisheries productivity, strengthening ecosystem and community resilience, and improving the livelihoods of coastal populations.
However, understanding of blue carbon potential and benefits among stakeholders — including government, communities, academics, and civil society organizations — remains uneven. This underscores the need for discussion forums to unify perspectives and consolidate ideas on blue carbon management in Indonesia.
At the same time, institutional and regulatory frameworks supporting blue carbon economic development must be strengthened. Legal certainty, governance transparency, and consistent policies are essential foundations for attracting investment and ensuring program sustainability.
“Without a clear regulatory framework, Indonesia’s vast blue carbon potential will be difficult to optimize,” Daniel stated.
The growth of both domestic and international carbon markets offers Indonesia the opportunity to lead in developing and operationalizing a blue carbon economy. The scientific foundation is already strong and ready to be utilized to enhance the quality and integrity of Indonesia’s blue carbon projects. (Sulung Prasetyo)
