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Jakarta, 26th of July – As the world marks World Mangrove Day, Indonesia is reaffirming the importance of protecting and restoring mangrove ecosystems as a strategic asset for climate action and sustainable economic growth. Home to the world’s largest mangrove forest, Indonesia has a unique opportunity to lead the global blue carbon economy while strengthening the resilience of its coastal communities.
Indonesia is home to the world’s largest mangrove forest, spanning 3.44 million hectares and representing around one-fifth of global mangrove cover. KKP estimates about 38% of these ecosystems are currently degraded, making restoration a significant environmental priority as well as a long-term investment opportunity. Mangroves are among the world’s most effective natural carbon sinks, storing significantly more carbon than terrestrial forests while protecting coastlines, supporting biodiversity, and sustaining the livelihoods of coastal communities.
As part of this commitment, Indonesia’s Ministry of Marine Affairs and Fisheries (KKP) and Rubicon Carbon have signed a Letter of Intent (LoI) to explore the development of high-integrity blue carbon projects along the northern coast of Java. The collaboration marks an important step in mobilizing international private-sector expertise to support Indonesia’s blue economy ambitions while strengthening mangrove conservation and sustainable coastal development.
The partnership follows KKP’s launch of Indonesia’s Blue Carbon Ecosystems Roadmap and Action Guide at COP30 in Belém, and reflects the government’s move to formally include the marine and fisheries sector in its national climate agenda from its Second Nationally Determined Contribution (NDC) onward. Central Java’s coastline has been identified by KKP as one of the country’s most investment-ready regions for blue carbon development, combining significant mangrove ecosystems and high rehabilitation needs with existing infrastructure, coastal community and local government engagement, and nearby industrial and oil and gas activity that generates demand for emissions offsetting.
“Indonesia is committed to unlocking the full potential of its blue carbon economy while ensuring that coastal communities remain at the center of its development,” said Sakti Wahyu Trenggono, Minister of Marine Affairs and Fisheries of Indonesia. “Through this collaboration, we aim to restore and strengthen mangrove ecosystems along the northern coast of Java, with the potential to cover 50,000–70,000 hectares. We will work closely with local communities and deliver lasting environmental and economic benefits.”
Rubicon Carbon, a leading carbon solutions provider backed by TPG Rise Climate, will work alongside KKP to explore opportunities for developing high-integrity blue carbon projects that align with international best practices. The collaboration brings together Indonesia’s natural capital with Rubicon Carbon’s expertise in carbon markets and climate finance to help build projects with long-term environmental and community impact.
“We are greatly encouraged by Indonesia’s strong commitment to developing its blue economy. Central Java brings together the policy readiness, ecosystem scale, and community engagement that high-integrity blue carbon development depends on—and we’re proud to be building this partnership with KKP on those terms,” said Flora Ji, Head of Asia and Head of Asset Management at Rubicon Carbon.
“We’ve been fortunate to build strong relationships with Indonesia’s leadership, from conversations with President Prabowo and Minister Trenggono at Davos earlier this year, to discussions with Pak Hashim in Jakarta, that together underscored just how seriously this administration is prioritizing its blue economy,” said Filipe Blackwood Oliveira, Chief Market Relations Officer at Rubicon Carbon and Senior Advisor to TPG Rise Climate. “What we’re signing today with KKP is a step toward turning that ambition into practice. It is structured so that community benefit is measured and delivered alongside the environmental outcomes, with the potential to improve livelihoods for over 1.4 million people living along Java’s northern coast,” he added.
The partnership was facilitated by Equatorise, an Indonesia-focused strategic advisory firm that connects international investors and businesses with government and market opportunities across Indonesia. Equatorise supported the engagement between KKP and Rubicon Carbon, helping establish the strategic partnership and enabling collaboration between global climate investors and Indonesian stakeholders.
Steven Marcelino, CEO and Managing Partner of Equatorise, said, “World Mangrove Day is a reminder that protecting mangroves is not only an environmental imperative, but also an economic opportunity for Indonesia. With the world’s largest mangrove ecosystem, Indonesia is uniquely positioned to lead the global blue carbon economy. We are proud to facilitate this collaboration by connecting international climate investors with government priorities and helping build partnerships that can deliver long-term environmental, social, and economic value.”
The Letter of Intent reflects a shared commitment to explore opportunities for high-integrity blue carbon development in Indonesia. By bringing together government leadership, international climate expertise, and local engagement, the collaboration aims to contribute to the long-term growth of Indonesia’s blue economy while supporting global climate action.
