New Forestry Regulation Governs Social Forestry Carbon Trading

The Ministry of Forestry is currently revising Regulation of the Minister of Environment and Forestry No. 9 of 2021 on Management of Social Forestry (“Regulation 9/2021”). Director-General of Social Forestry at the Ministry of Forestry Catur Endah Prasetiani stated that this revision serves as a legal framework for carbon trading in the social forestry sector. 

“In the near future, we will also issue a Regulation of the Minister on Social Forestry. This is a revision of Regulation 9/2021,” said Endah.

Draft Regulation of the Minister will regulate the partners who will assist Social Forestry Business Groups (“KUPS”) in carbon trading. This regulation will establish the requirements for partners registered by the Directorate-General of Social Forestry.

Endah explained that partners are tasked with assisting KUPS in planning mitigation actions, including the preparation of the Mitigation Action Plan Document (“DRAM”). 

The draft regulation is also designed to ensure that KUPS remain the primary actors to prevent partners from engaging in “name-lending” practices. The new policy further aligns carbon trading with the Integrated Area Development (“IAD”) policy, which aligns with the “nesting” concept to enhance the economies of scale in social forestry.