Jakarta, Aug. 12 -- Indonesia's Environment Minister Muhammad Jumhur Hidayat said Village Cooperatives, known as KDMP, could participate in carbon trading by restoring forests, mangroves and other ecosystems.

"KDMP can participate if it carries out environmental restoration, which can earn incentives from the carbon market," Jumhur said in Jakarta on Wednesday.

He said cooperatives generally could also enter the business, allowing more communities to benefit economically from carbon trading.

Jumhur said the proposal reflects Indonesia's potential as a major provider of environmental services, particularly through forests and mangroves that absorb carbon emissions.

He said cooperatives could manage carbon units generated through the us...