FOLU Net Sink: Definition
What is Indonesia's FOLU Net Sink 2030? The forestry and land use target to absorb more carbon than the sector emits, and what it means for carbon projects.
FOLU Net Sink is Indonesia’s target for its forestry and other land use (FOLU) sector to absorb more greenhouse gases than it emits by 2030. It is the backbone of Indonesia’s NDC, because land use change, peat fires and deforestation have historically been the country’s largest emission sources.
Why it matters
The target sets the national context for every forest carbon project in Indonesia. It drives government policy on deforestation, peat restoration, mangroves, social forestry and forest management. It also shapes how carbon credits are governed: reductions from forests count toward the national target, so trading and international transfers must be authorised and recorded to avoid double counting.
How it works
The FOLU Net Sink operational plan sets actions and sub-national contributions, including:
- Reducing deforestation and forest degradation.
- Restoring and protecting peatland and mangroves.
- Sustainable forest management and enhancing carbon stocks.
- Rehabilitation and planting on degraded land.
- Strengthening social forestry and law enforcement.
Progress is measured through the national forest monitoring system and reported in the national inventory. See FOLU Net Sink 2030 and Indonesia’s NDC.
Indonesia and Southeast Asia angle
For developers, FOLU Net Sink is both a constraint and an opportunity. It explains why the government controls forestry carbon exports closely through Perpres 110/2025, SRUK and Permenhut 6/2026. It also means projects that clearly contribute to national goals, such as community ARR, peat rewetting and mangrove restoration, align with policy and may find domestic support.
Sub-national governments play a large role. Provinces prepare their own work plans under the national FOLU Net Sink plan, which can create openings for partnerships with projects that deliver measurable results in their territory. Aligning project monitoring with provincial reporting makes those partnerships easier.
Common mistakes
- Treating FOLU Net Sink as a carbon market rule; it is a national target.
- Ignoring that project reductions also count toward it.
- Quoting target figures from old documents; check the latest NDC.
More on the Indonesia regulation hub.
Frequently asked questions
What does FOLU stand for?
Forestry and Other Land Use, the sector covering forests, peatland, land use change and related emissions and removals.
Does FOLU Net Sink limit carbon credit exports?
It shapes them. Because forest reductions count toward the national target, international transfers need authorisation and accounting to avoid double counting. Check current rules under Perpres 110/2025.