Jakarta - The Indonesian Chamber of Commerce and Industry (Kadin Indonesia), through the Kadin Regenerative Forest Business Hub (Kadin RFBH), in collaboration with the British Embassy in Jakarta, held a discussion event titled Biodiversity Credit: Opportunities and Challenges in the Implementation and Expansion of Ecosystem Services Businesses in Indonesia, at the Mandarin Hotel, Central Jakarta, on Monday, April 14, 2025.

The event brought together stakeholders from the Ministry of Forestry, the Ministry of Environment, Bappenas, the Ministry of Finance, academia, the private sector, financial institutions, and NGOs to explore the prospects of developing and implementing Biodiversity Credit mechanisms.

Biodiversity credits represent an innovative approach to accelerating Indonesia's transition toward a green economy. This mechanism not only aims to reduce environmental degradation but also contributes positively to the conservation and restoration of nature and biodiversity.

This workshop served as a strategic momentum for advancing the implementation of biodiversity credits in Indonesia. It began by strengthening understanding and cooperation in developing a Biodiversity Credit scheme aligned with regenerative business principles, while emphasizing the urgency of transitioning to a green economy and integrated biodiversity management. It was followed by discussions on practical steps to develop instruments tailored to the Indonesian context that can be applied at both small and large business scales.

Through multi-stakeholder collaboration, the workshop also promoted the development of Multi-Business Forestry (MUK) as an approach that supports both conservation and the creation of new, renewable natural resource-based economic opportunities. Addressing biodiversity preservation challenges—including preventing biodiversity loss—requires strong regulatory frameworks, adequate financing, and cross-sectoral synergy to strengthen Indonesia's position as a country with vast bioeconomic potential. Moving forward, concrete follow-up actions are needed from the government and Kadin, representing the private sector, to clarify the methodologies and mechanisms of Biodiversity Credits so that they can be accessed and utilized optimally without burdening stakeholders.

The Biodiversity Credit mechanism enables businesses to invest in environmental protection and restoration efforts. This scheme not only creates new and innovative business opportunities but also provides tangible contributions to sustainable development, a key global agenda that encourages active private sector involvement.

Shinta Widjaja Kamdani, Vice Chairwoman for Human Capital, Culture, and Sustainable Development at Kadin Indonesia, emphasized the strategic role of businesses in integrating conservation efforts into their business models.

"Biodiversity conservation must become an integral part of economic development. Biodiversity credits provide an opportunity for businesses to contribute meaningfully to environmental preservation. By integrating market mechanisms into conservation efforts, we can create new business opportunities while maintaining ecosystem balance," she said.

The British Ambassador to Indonesia, Dominic Jermey, stated:

"The UK is proud to be one of the initiators of the International Advisory Panel on Biodiversity Credits (IAPB), together with France, since June 2023. We look forward to the next steps of the IAPB in supporting the implementation of global principles and guidelines set out in the framework to promote high-integrity financing for nature.

The development of biodiversity credit mechanisms in Indonesia is a crucial strategic step in our global effort to address biodiversity loss and mitigate climate change risks. As we move toward a deeper UK–Indonesia Strategic Partnership, the UK remains committed to strengthening collaboration with Indonesia to achieve sustainable economic growth for the prosperity of our people and ensure a livable planet for future generations.”

The forum also aimed to accelerate the integration of biodiversity conservation into national economic policies by balancing economic growth with environmental preservation, while enhancing Indonesia’s role in the global biodiversity credit market.

About the Kadin Regenerative Forest Business Hub (RFBH)

Kadin Indonesia, through the Regenerative Forest Business Hub (Kadin RFBH), is committed to accelerating the implementation of the Multi-Business Forestry (MUK) policy as mandated by Government Regulation (PP) No. 23 of 2021. The MUK policy is also part of the Bioeconomy initiative, designated as a flagship project in the National Medium-Term Development Plan (RPJMN) 2025–2029.

Since May 2022, Kadin RFBH has actively pursued initiatives to fast-track MUK implementation through learning programs, dialogue, and business activities based on the MUK model.

By adopting a more diversified business model, MUK not only enhances the economic value of the forestry sector through crop diversification but also improves forest ecosystems, increases carbon sequestration, and strengthens the relationship between forestry business actors and local communities.

To achieve these goals, Kadin RFBH collaborates with a wide range of stakeholders, including Forest Utilization Business License (PBPH) holders, off-takers, communities, financial institutions, academics, CSOs/NGOs, and business developers.

Kadin RFBH also implements capacity-building programs, particularly for forestry companies (PBPH), through workshops, knowledge-sharing on agroforestry implementation, facilitation of MUK business plan development, field visits, and stakeholder dialogues.

Kadin RFBH encourages cross-ministerial and inter-agency collaboration and remains open to partnerships with various stakeholders to support the transformation of forestry business policies, ensuring the timely implementation of MUK for delivering social, economic, and environmental benefits.