Indonesia is progressively employing nature-based solutions (NBS) to address climate change, leveraging its extensive natural ecosystems, including tropical forests, peatlands, and mangroves. These efforts focus on conserving, restoring, and managing these ecosystems to enhance carbon sequestration and reduce greenhouse gas emissions.
The country’s commitment to NBS is evident in its enhanced Nationally Determined Contribution (NDC), aiming for a 31.89%–43.20% reduction in emissions by 2030 compared to business-as-usual scenarios. The Forestry and Other Land Use (FOLU) sector is pivotal in this strategy, with plans to become a net carbon sink by 2030. Key actions include preventing deforestation and forest degradation, promoting sustainable forest management, rehabilitating forests, conserving existing forest areas, and managing peatlands effectively.
In September 2024, President-elect Prabowo Subianto announced plans to establish a $65 billion green economy fund by 2028. This fund aims to finance projects such as rainforest preservation, reforestation, and peatland and mangrove replanting, with revenues generated through the sale of carbon credits. A new regulatory body will oversee carbon emission rules to ensure alignment with Indonesia’s climate commitments under the Paris Agreement.
NBS has the potential to significantly impact Indonesia’s emissions. Based on 2010 levels, the FOLU sector alone is expected to contribute up to 55% (500 MtCO₂e) of the total emissions reduction target of 915 MtCO₂e. This underscores the critical role of NBS in achieving Indonesia’s climate objectives.
Efforts to reduce deforestation have yielded positive results. Deforestation rates have declined from 3.51 million hectares during 1996-2000 to 104 thousand hectares in 2022. Similarly, land fires decreased from 1.6 million hectares in 2019 to approximately 105,540 hectares in 2024. These reductions contribute to lower emissions from land-use changes.
Indonesia employs the National Registry System (SRN) to monitor and report emissions reductions from various initiatives, including NBS. The SRN is an integrated platform that records climate change mitigation and adaptation actions, emissions data, and carbon transactions. It plays a critical role in ensuring the transparency, traceability, and credibility of Indonesia’s efforts under its NDC. The SRN also serves as a clearinghouse for carbon credit initiatives and helps align domestic actions with international carbon markets.
However, the political landscape following the 2024 elections has introduced new uncertainties. President Prabowo Subianto Djojohadikusumo’s early months in office have been marked by administrative disarray and public controversy, raising concerns about the continuity and effectiveness of national climate strategies. Critics argue that the government’s shifting priorities and lack of clear direction may hinder the rollout of key initiatives such as the green economy fund and robust NBS implementation.
Indonesia’s implementation of nature-based solutions plays a significant role in its climate change mitigation strategy. Indonesia aims to achieve substantial emissions reductions through the conservation, restoration, and sustainable management of its rich natural ecosystems while promoting environmental and socio-economic co-benefits. Continued political will and efforts to monitor, evaluate, and enhance these initiatives will be crucial to their long-term success.
This post was submitted by Climate Scorecard Indonesia Country Manager Netra Naik.
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