Indonesia, home to the world’s third-largest tropical forest cover, is a key player in global climate action. As part of its commitment to the Paris Agreement, the country aims to achieve a Forest and Other Land Use (FOLU) Net Sink by 2030, absorbing more carbon than it emits from forests. Reaching this target requires robust monitoring, policy enforcement, and support from forest concession holders. 

To help accelerate progress, the Ministry of Forestry—supported by UNDP’s Climate Promise—has upgraded its SIPASHUT (Business Management and Utilization of Forest Information System or Sistem Informasi Pengendalian Usaha Pemanfaatan Hutan) system, adding four new features to better guide and monitor PBPH (Forest Utilization Business License) holders in contributing to the FOLU goal.

Digitalizing Forest Monitoring System

Dian Puspitarini still remembers the moment her career path took shape. While studying at IPB University, she met an alumnus who shared stories about their work protecting Indonesia’s forests. Inspired by their dedication, she decided to follow a similar path, joining the Ministry of Forestry as a civil servant in 2008.

But what seemed like a noble mission came with real-world challenges. Forest monitoring, Dian soon learned, often meant going deep into the field, navigating rough terrain, and relying on patchy data. That changed with the introduction of SIPASHUT—a digital system that allows real-time access to 10-year business plans and annual reports submitted by forest business license holders.

“Now, my job as an administrator is to validate data. With SIPASHUT, monitoring forests is more efficient, and we can reduce unnecessary field visits,” said Dian, who currently works at the Directorate of Business Control and Forest Utilization (PUPH).

The system is currently undergoing major upgrades, including four new features such as a geospatial tool that displays up-to-date, accurate information about business activities and locations. Supported by UNDP’s Climate Promise initiative, this enhancement strengthens SIPASHUT’s role not just in forest oversight, but also in achieving Indonesia’s FOLU Net Sink 2030 target. It will play a crucial part in verifying carbon trading and ensuring emissions reductions are backed by credible, trackable data.

Continuous Improvement 

To accelerate progress toward achieving net sink in the FOLU sector by 2030, the Ministry of Forestry, with the support of Climate Promise UNDP, is enhancing its SIPASHUT (Business Management and Utilization of Forest Information System or Sistem Informasi Pengendalian Usaha Pemanfaatan Hutan), an integrated forest control and business utilization system. Previously, used as a platform to monitor forests utilization process from planning to reporting, SIPASHUT now is equipped to ensure that emission reduction targets in FOLU Net Sink 2030 plan are met through precise data recording.

To incorporate this, four new features are added in four different stages. The new features are recording of data for FOLU) on sub-national level, integration of FOLU Sub-National data with Business Management Plan (Rencana Kerja Usaha/RKU), data integration of FoLU Subnational data with Yearly Business Management Plan (Rencana Kerja Tahunan/RKT) and Report Realization. These new features will enable quicker decision making, including policy formulation and implementation, as well as supporting services for business license holders. 

Taufik Hidayat, a colleague of Dian at the Directorate of Business Control and Forest Utilization (PUPH), emphasized that the SIPASHUT upgrade process is being carefully managed to avoid disrupting business operations. While the system already stores complete datasets, administrators must still manually fill in missing fields and upload updated information to ensure data accuracy.

“What we do will in help the system to develop and support our tasks. Without our input, the system cannot carry its tasks, such as verifying data,” said Taufik. “We create filter in the system, so if there are any data incompatibility, we can verify it.” 

Unlike other static technology products, SIPASHUT is designed to continuously evolve. New features are added in response to emerging regulations and operational needs, ensuring it remains relevant and effective in supporting forest monitoring and emissions reporting.

“Every modern organisation will constantly evolve, so will their needs. Therefore, they need to keep improving the technology, or the business processes, which may lead to developing new features,” explained Dicky Rinaldy, who works as System Administrator at the Directorate of Business Control and Forest Utilization (PUPH) of Ministry of Forestry. “The new features are developed to address existing gaps and serve as solutions, with stronger security features to protect sensitive data that are stored in the system.” 

The new features also provide enhanced spatial and numeric data capabilities for the achievement of FOLU Net Sink 2030 through increase international recognition of forestry sector contributions, and carbon-based economic incentives. By adding a spatial data feature, accurate information about business operators’ contributions to carbon sequestration is monitored. and planned better. The spatial system input also simplifies land cover analysis for business operators which lead to better planning. As such, an improved SIPASHUT supports climate change mitigation and emission reduction policies. 

Digital Tools for Forest-cased Climate Action

As part of its commitment to the Paris Agreement, Indonesia aims to reach net sink status in the forest and land use (FOLU) sector by 2030 – absorbing more carbon than it emits. Achieving this goal requires accurate data, strong enforcement, and active involvement from forest license holders.

To support this, the Ministry of Forestry – together with UNDP’s Climate Promise – is upgrading its forest monitoring platform, SIPASHUT (Forest Business Management and Utilization Information System). What was once a tool for tracking forest use is now evolving into a powerful system for monitoring emissions reductions and supporting climate targets.

Four key features are being added to strengthen its capabilities:

• Sub-national FOLU data integration
• Alignment with business and annual work plans (RKU & RKT)
• Real-time reporting and tracking of emission reductions
• Enhanced spatial data for better land-use planning
   

With these upgrades, SIPASHUT will enable faster, data-driven decision-making, improve forest governance, and help track carbon contributions more precisely. It also supports greater transparency and can boost international recognition and carbon-based economic incentives for forest concession holders.

By modernizing its digital systems, Indonesia is reinforcing its climate commitments—making forests not just protected spaces, but active players in building a low-carbon future.

Building Capacity for Carbon Trading in Forestry

Capacity building in the FOLU sector is essential in Climate Promise UNDP project. Many regulations are adjusted to reflect the priorities of the new government which came into power in October 2024. Therefore, capacity building is needed to equip the administrators to address transitional challenges effectively through new knowledge and skills about the newly implemented policies on the carbon market in the FOLU sector as well as familiarize with new technology such as the new features in SIPASHUT. 

In relation to Indonesia’s FOLU Net Sink 2030 initiative, the project organized a capacity building initiative on aggregating baseline for carbon emissions. It aimed to introduce the administrators at the Ministry of Forestry about recent regulations and the national roadmap for carbon trading in the forestry sector. Participants explored how the Business Permit for Forest Utilization (PBPH) could support the achievement of Indonesia’s Nationally Determined Contributions (NDCs). This allowed the administrators to practice mapping out baseline emissions and NDC targets at different levels, from sector to sub-sub-sector. They worked through methods to calculate emission surpluses and deficits, explored data breakdown techniques, and identified key indicators to disaggregate baselines and enhanced NDC targets to the private sector level. 

A baseline is a reference point used to measure how much emissions are reduced over time. In carbon trading, baselines help determine the value of emission reductions. By breaking down baselines into smaller sectors like peatlands or mangroves, Indonesia can better understand which areas are contributing to emission reductions and how to improve efforts in each. Through interactive discussions, participants also deepened their understanding of activities across forestry, mangrove, and peatland sub-sectors, while gaining perspective on the history of Indonesia’s FOLU Net Sink 2030 and the development of voluntary carbon trading in the forestry sector. 

The training underscored the importance of maintaining data consistency and regularly updating datasets to ensure accurate and reliable calculations. Participants were introduced to a range of carbon accounting methods and the practical mechanisms of carbon trading. This knowledge equips them to design, implement, and manage sustainable projects with measurable climate impacts, such as forest restoration, deforestation prevention, and reducing forest degradation.

Improving Forest Monitoring to Support Climate Targets
As part of Indonesia’s FOLU Net Sink 2030 effort, a capacity-building session was held for Ministry of Forestry administrators to strengthen their understanding of carbon baselines – a key reference point for measuring emissions reductions.

Participants explored how forest utilization permits (PBPH) can help achieve national climate targets (NDCs). They practiced mapping emissions across forestry sub-sectors like mangroves and peatlands, calculating surpluses and deficits, and identifying data needed to support carbon trading.

Through hands-on exercises, they deepened their knowledge of carbon accounting, data breakdown methods, and the structure of Indonesia’s voluntary carbon market. The training also emphasized the importance of consistent, up-to-date datasets to support accurate, reliable climate reporting.

The session also introduced new features of SIPASHUT, the forest monitoring system. Officials strengthened their skills in using spatial data to track and report progress under FOLU Net Sink 2030.

“I had the chance to reconnect with technical knowledge,” said Siwi Retno Handayanti, one participant, “and better understand how carbon emissions are calculated.”

By investing in technical capacity, Indonesia is equipping its institutions to lead the way in forest-based climate action.

“An effective forest monitoring system is key to enabling successful carbon trading, strengthening climate change mitigation efforts, and informing emission reduction policies. By providing accurate calculation of mitigation actions, it can also support the achievement of Indonesia’s FOLU Net Sink 2030 target, increase international recognition of forestry sector contributions, and provide economic benefits through carbon-based incentives.