Bappenas Forges Strategic Partnership with CSES on Carbon Trading Cooperation in the Palm Oil Sector

The Ministry of National Development Planning/Bappenas has taken a strategic step in aligning sustainable environmental development with the national economic agenda through carbon trading cooperation in the palm oil sector. 

Bappenas presented the framework for a bilateral partnership with the Chinese Society for Environmental Sciences (CSES) during the High-Level Meeting on the Preparation of Bilateral Cooperation between Bappenas and CSES on Innovative Development Financing through Carbon Trading in the Sustainable Palm Oil Industry held at the Indonesia Pavilion, World Expo 2025 Osaka, Kansai, Japan (11 October).

“The Memorandum of Understanding between Indonesia and China will establish a comprehensive cooperation framework, focusing on the integration of trade, technology, and sustainable environmental practices, particularly through carbon trading in palm oil commodities,” said Teni Widuriyanti, Secretary of the Ministry of National Development Planning/Chief Secretary of Bappenas.

This collaboration aligns with the 2025-2029 National Medium-Term Development Plan (RPJMN), which prioritises innovative development financing, downstream processing in the palm oil industry, and strengthening human resource and cooperative capacity. I

n practice, the cooperation will promote low-emission technological innovations such as the Low Emission Palm Oil Mill (PaMER) and Controlled Emission Composting Chamber (CECC). These technologies aim to improve processing efficiency, reduce carbon emissions, and encourage sustainable practices through technology transfer and capacity building for farmers and cooperatives.

While Indonesia already operates a carbon trading scheme, a specific methodology for the palm oil sector has yet to be developed. Bappenas is therefore committed to supporting the creation of a tailored carbon reduction methodology for the industry. “This Memorandum of Understanding will help develop a standardised carbon reduction methodology specifically designed for the palm oil sector, ensuring its integration into the global carbon market,” explained Siliwanti, Senior Advisor to the Minister of National Development Planning for Innovative Development Financing.

Going forward, Bappenas and CSES will continue coordination to ensure the successful signing and implementation of the memorandum and its collaborative initiatives. The partnership is expected to foster valuable expertise and innovation in low-emission sustainable development. “The adoption of low-emission technology will not only reduce carbon output but also increase carbon credit revenue, serving as an important financial source for national development through carbon credit trading, with China as a key buyer,” concluded Teni.