WNAM REPORT: Deputy Minister of Agriculture Sudaryono has reaffirmed his ministry’s commitment to strengthening the implementation of Carbon Economic Value (NEK) or carbon pricing as part of Indonesia’s transformation toward low-emission and sustainable agriculture.
In a statement in Jakarta on Wednesday, he explained that the agricultural sector plays a strategic role in carbon pricing, acting not only as a source of greenhouse gas emissions but also as a carbon sink through sustainable cultivation practices.
“By adopting low-emission technologies and environmentally friendly land management, this sector can become a key driver in climate change mitigation while opening up new economic opportunities,” he said.
Sudaryono noted that the sector’s readiness to implement carbon pricing is a crucial factor in attracting foreign investment, particularly as international carbon trading markets continue to open up.
Through this mechanism, global investors can purchase carbon credits from Indonesia, unlocking financing opportunities for low-carbon projects within the agricultural sector.
Furthermore, he underlined that these efforts align with Indonesia’s vision outlined in the Long-Term Strategy for Low Carbon and Climate Resilience (LTS-LCCR) 2050, as well as its commitment to emission reductions through the Nationally Determined Contribution (NDC).
Indonesia has set a target of cutting agricultural emissions by 10 million tons of CO2 equivalent by 2030.
The 2025–2029 National Medium-Term Development Plan also highlights the importance of integrating economic growth with food, energy, and water security, as well as transitioning toward a green economy and Net Zero Emissions (NZE), targeting an emission reduction of 30.11 percent by 2029.
To fast-track carbon pricing implementation, the government has issued Presidential Regulation Number 110 of 2025 concerning the implementation of cross-sectoral carbon economic instruments. This includes the agricultural sector, covering subsectors such as rice farming, livestock, and plantations.
He added that the Ministry of Agriculture has been running various emission reduction programs since 2019, including the use of low-emission rice varieties, biogas development, and carbon sequestration in horticultural and plantation crops.
The Indonesian government is currently finalizing the implementing regulations, including an Agriculture Minister’s Decree on the implementation of carbon economic instruments within the agricultural sector.
Several strategic road maps are currently being prepared by the Ministry of Agriculture, such as NZE in agriculture, Enhanced NDC, Second NDC, and a road map on carbon pricing implementation in the agricultural sector.
In its efforts, the ministry will strengthen its Measurement, Reporting, and Verification (MRV) system using real-time data, develop low-emission farming practices, and enhance the carbon literacy of farmers and extension workers.
Additionally, it will promote economic incentive schemes such as carbon pricing and result-based payments.
