Forest Carbon and EUDR in North Sumatra
Forest carbon in North Sumatra: Batang Toru, Leuser and Toba highlands, east coast peat and mangroves, palm oil, rubber and coffee EUDR exposure.
North Sumatra combines high-value upland forest, notably Batang Toru and part of Gunung Leuser National Park, with one of Indonesia’s oldest plantation economies on the east coast. Forest carbon options range from upland REDD+ and highland agroforestry to east coast mangrove and peat work, while EUDR exposure is concentrated in palm oil, rubber and coffee.
Forest and land cover profile
The province spans both coasts of Sumatra. The Bukit Barisan range runs through the middle, with Lake Toba, the world’s largest volcanic lake, sitting on the high plateau. Upland forest survives mainly on steep slopes and in protected areas.
Two forest areas stand out. The Langkat section of Gunung Leuser National Park, shared with Aceh, holds lowland and hill dipterocarp forest. Further south, the Batang Toru forest in the Tapanuli districts is the only known home of the Tapanuli orangutan, described as a separate species in 2017. Batang Toru is mostly hill and montane forest, and much of it lies outside national park status, which makes its legal classification central to any project design.
Peat and mangroves
The east coast lowlands facing the Strait of Malacca contain peat swamps, particularly in the Labuhanbatu districts, which continue south into the much larger peat systems of Riau. Much of this peat has been drained for oil palm.
Mangroves fringe the east coast estuaries. Many have been converted to fish and shrimp ponds or cleared for palm. Restoring abandoned ponds and degraded mangrove belts is a practical blue carbon entry point, with VM0033 as the usual Verra methodology for tidal wetland restoration.
Main commodities and deforestation drivers
North Sumatra’s estate sector dates back to the colonial Deli plantations. Today the main land-based commodities are:
- Oil palm: large estates and smallholders across the east coast and the southern lowlands.
- Rubber: both estates and smallholder gardens, often old and low-yielding.
- Coffee: arabica from the Toba highlands, Dairi (Sidikalang), Mandailing and Simalungun; some robusta at lower elevations.
- Cocoa: smallholder plots in several lowland districts.
- Benzoin (kemenyan): a resin harvested from Styrax trees in customary forest gardens around Toba. Not an EUDR commodity, but an important forest-based livelihood.
- Pulpwood: industrial eucalyptus plantations in the Toba uplands.
Drivers of forest loss include smallholder palm and rubber expansion into forest margins, infrastructure and energy development in upland forest, and conversion of upland forest and customary gardens to plantations.
Which carbon project types fit
| Project type | Fit in North Sumatra |
|---|---|
| REDD+ | Unprotected forest around Batang Toru and the Leuser fringe, where the threat is documented |
| ARR and agroforestry | Degraded slopes around Lake Toba, shade trees in coffee gardens, rubber rejuvenation with mixed species |
| Mangrove restoration | Abandoned ponds and eroding east coast estuaries |
| Peat rewetting | Drained east coast peat, often inside or next to plantations |
Rubber gardens are a good candidate for mixed agroforestry because they already function as tree cover. Our rubber agroforestry guide explains how carbon can be counted without double-claiming existing biomass.
EUDR exposure
North Sumatra is a major export gateway through Belawan, so much of its exposure is felt by traders and processors as well as growers.
- Palm oil: complex supply chains mixing estate, plasma and independent smallholder fruit. Every plot needs geolocation, and over-4-hectare plots need polygons. See EUDR and palm oil.
- Rubber: smallholder rubber is collected through layers of dealers before reaching crumb rubber factories, which makes traceability difficult. See EUDR and rubber.
- Coffee: highland smallholders, often with informal land titles.
Plots overlapping forest estate face both a deforestation and a legality test. The 31 December 2020 cut-off is checked against satellite history for each plot.
Social forestry and customary land
Batak, Karo, Simalungun, Pakpak and Mandailing communities hold customary land claims across the uplands. Around Lake Toba, overlaps between customary benzoin forests and industrial plantation licences have been a long-running source of conflict, and some customary forests (hutan adat) have been formally recognised in recent years.
Permenhut 6/2026 opens carbon trading to social forestry groups and customary communities as equal participants, which matters here because many of the best forests are claimed customary land. Projects still need free, prior and informed consent and a benefit-sharing plan; see customary forest carbon.
Practical next steps
Screen candidate land against forest estate status, the primary forest moratorium, peat maps and ten-year land cover history before committing budget. Our feasibility and eligibility service covers this, and the forest carbon hub explains each project type in more depth. Neighbouring West Sumatra offers a useful comparison for customary-led forest management.
Frequently asked questions
Where are the main forest carbon opportunities in North Sumatra?
Upland forest protection in Batang Toru and the Leuser fringe, agroforestry around Lake Toba and in the coffee highlands, and mangrove and peat restoration on the east coast.
Which EUDR commodities matter most in North Sumatra?
Palm oil and rubber, followed by arabica and robusta coffee and some cocoa. The province has a long history of estate plantations alongside a large smallholder sector.
Why is customary land a sensitive issue around Lake Toba?
Batak communities hold customary claims to forests and benzoin (kemenyan) gardens that overlap state forest and plantation licences. Any carbon project there needs clear tenure mapping and consent.