Minister of Environment, Hanif Faisol Nurofiq, has asked companies to support efforts to gain international recognition for greenhouse gas (GHG) emission reduction certificates from peatland restoration under the United Nations Framework Convention on Climate Change (UNFCCC).

“This is something we must push together, because the role of companies is greater than my own capacity,” Hanif said at the Peatland Ecosystem Restoration Collaboration Forum in Jakarta on Thursday, October 2, 2025.

The certificates, once internationally recognized, could be optimized in global carbon markets, leveraging peatland’s significant carbon capture potential.

“Peatlands and mangroves have extremely high carbon storage capacity, estimated at five to 10 times greater than terrestrial forests,” he noted.

Hanif estimated Indonesia’s peatlands hold around 55–56 gigatons of CO2e. With many companies holding concessions in peatland areas, he expressed hope that emission reductions from these regions could be maximized.

Peatland potential and restoration targets

According to the National Research and Innovation Agency (BRIN), Indonesia has nearly 13.4 million hectares of peatland − the world’s largest tropical peatland area. The Environment Ministry has set a target of restoring 3.3 million hectares in the coming years, with companies expected to play a central role.

In addition to restoring peatlands within their concessions, companies are being asked to contribute to buffer zone recovery. In return, the government has promised recognition through the PROPER environmental award system, as well as official emission reduction certificates to strengthen corporate financing and investment opportunities.

Community involvement

Restoration efforts will not rely solely on companies. Local communities will be engaged through the Independent Peatland Care Village (DMPG) scheme. Out of 2,354 targeted priority villages, about 1,450 are located in buffer areas covering 528,000 hectares.

Companies will help support empowerment programs in these villages, while restoration outside concession and buffer areas will be managed by central and local governments.