Indonesia Tests Innovative Climate Financing Model at Way Kambas National Park

Indonesia has selected Way Kambas National Park in Lampung as a pilot site for a new climate financing approach intended to strengthen long-term conservation funding. The initiative combines public funding, private investment and environmental markets, including carbon credits and biodiversity-linked finance. According to Forestry Minister Raja Juli Antoni, the pilot is designed to reduce reliance on limited state budgets and international donor support while creating a more sustainable funding model that also benefits local communities.

Speaking in Bandarlampung, Antoni explained that the programme builds on a new regulatory framework enabling voluntary carbon market projects within protected areas. Details of the pilot were reported by Antara News. The initiative is intended to diversify conservation funding sources while ensuring that revenues are reinvested into ecosystem protection and restoration.

Blended finance to support conservation

The Forestry Ministry is promoting a blended finance approach that combines several funding streams. These include allocations from the state budget, support from international organisations, private-sector participation and financing instruments linked to environmental outcomes.

Under Ministerial Regulation No. 27 of 2025, voluntary carbon market projects are now permitted within national parks. This policy shift allows conservation areas to generate carbon credits through forest protection and ecosystem restoration activities, which can then be purchased by companies seeking to offset greenhouse gas emissions.

The government says the Way Kambas pilot will explore several mechanisms, including biodiversity bonds, carbon credits traded in international voluntary carbon markets and expanded ecotourism offerings designed for different visitor segments.

Moving beyond traditional conservation funding

Officials describe the initiative as part of a broader shift in how conservation areas are financed. Traditionally, national parks have relied heavily on government budgets and international non-governmental organisations. The new model aims to draw in private investment and green capital markets while maintaining conservation objectives.

This approach reflects Indonesia’s wider efforts to strengthen regulatory frameworks and governance mechanisms across multiple sectors. Similar policy initiatives can be seen in areas such as digital governance and safety, including programmes discussed in Indonesia: Regulation, Support Platforms Strengthen Child Online Safety and measures to enhance digital infrastructure security through initiatives like biometric SIM registration.

Protecting critically endangered species

Way Kambas National Park is one of Indonesia’s most significant conservation areas and provides habitat for several endangered species. These include the Sumatran elephant, Sumatran rhinoceros and Sumatran tiger, all classified as critically endangered by the International Union for Conservation of Nature (IUCN).

Under the proposed carbon credit scheme, companies seeking to offset emissions would purchase credits generated through forest conservation and restoration projects within the park. Revenues from these transactions would be channelled back into park management, habitat protection and ongoing ecosystem recovery programmes.

Authorities expect the pilot to provide insights into how environmental finance mechanisms can support biodiversity protection while creating more resilient funding structures for Indonesia’s protected areas.