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and fulfilling Indonesia's climate commitments. to support emissions reduction in the forestry sector through
APHI Chairman, Soewarso, said the forestry sector must Jurisdictional REDD+ (JREDD+) financing.
diversify its revenue sources by maximising environmental A memorandum of understanding signed during London
services, carbon, biodiversity and non-timber forest products Climate Action Week 2026 marks both parties' commitment
while addressing persistent challenges such as high production to advancing discussions on mobilising international climate
costs, land tenure conflicts, concession uncertainty and limited finance to help Indonesia achieve its climate targets while
value-added processing. strengthening sustainable forest management and improving
The Ministry estimates that the new approach could generate local livelihoods.
economic value up to 10 times greater than conventional The cooperation will explore the use of verified emissions
timber-based business models. reductions generated through the Forest Carbon Partnership
Director General of Sustainable Forest Management, Facility (FCPF), alongside opportunities for results-based
Laksmi Wijayanti, said the policy is aimed at addressing the payments and other high-integrity climate financing mechanisms.
low economic competitiveness of forests which has historically
made them less attractive than other land uses. Strengthening forestry law to keep pace with evolving
challenges
Innovative conservation financing promoted Deputy Minister of Forestry, Rohmat Marzuki, said there is a
Indonesia is promoting an innovative conservation financing need to strengthen Indonesia’s Forestry Law to keep pace
model to reduce reliance on public funding while attracting with evolving legal, policy and sustainability challenges.
high-integrity private investment. He said revisions are necessary to provide greater legal
Speaking in London, Forestry Minister, Raja Juli Antoni, said certainty in forest governance while ensuring a balance between
the country is introducing a new paradigm for conservation economic, social and environmental functions.
management that aims to make national parks financially self- The proposed reforms would also reinforce the recognition
sustaining, increase community participation and strengthen and protection of indigenous peoples and communities living
private sector involvement under a transparent and accountable in and around forest areas.
regulatory framework. Marzuki highlighted unresolved tenure conflicts as one of
To support this goal, the government has established an the forestry sector’s most pressing issues, citing overlapping
innovative financing task force for 13 national parks and two claims involving forest lands, community areas, indigenous
conservation landscapes for iconic species, targeting financial territories and permits from other sectors.
independence by 2030.
The strategy combines regulatory reform, institutional
strengthening and private investment through mechanisms such Landscape Alliance
as carbon credits, biodiversity credits, conservation bonds,
ecotourism, bioprospecting, non-timber forest products and
public-private partnerships. Antoni said the approach is intended
to improve conservation outcomes while creating economic
opportunities for communities living around protected areas.
In related news, the Ministry of Forestry and Emergent
Forest Finance Accelerator, Inc. are exploring a partnership

