In Indonesia’s Central Kalimantan, a 23,665-hectare stretch of degraded peatland and mangrove forest is slowly being restored under a project that blends climate ambition with community resilience. At the helm is Dr. Handoko Limaho, CEO of Hutan Kencana Group, who has charted an unusual journey — from years in the palm oil sector to championing nature-based solutions as a viable path for business, biodiversity, and people.
In this exclusive conversation with CarbonWire, Handoko shares his personal and professional challenges in this journey and how he has managed to remain steadfast in his belief to bring about change and restore the environment one day at a time.
Breaking away from palm oil
For decades, Handoko’s family was entrenched in the palm oil industry, with concessions across Kalimantan and Sumatra. But as environmental awareness grew, so did his conviction that a different path was needed. The decision to step away from palm oil was not smooth; it brought resistance from his family and skepticism from peers who dismissed carbon markets as “intangible” or “mumbo jumbo.”
“I believed this was the better way to create impact and leave a legacy for the next generation.”
By 2021, after years of internal family battles, the group began divesting from plantations. Today, the family has sold its stakes in palm oil, redirecting its resources towards ecosystem restoration.
The PLUM Project: Climate, community and biodiversity
At the heart of Hutan Kencana’s portfolio is the PLUM Project, a peatland and mangrove restoration initiative covering 23,665 hectares. Its design is rooted in what Handoko describes as the “three Cs”: climate, community, and conservation (for biodiversity).
The project not only targets long-term carbon emission reductions but also tackles pressing local development challenges. Villages once plagued by poor sanitation and high infant mortality are seeing measurable improvements. A government award recently recognised one project-linked village as “open defecation free,” while local stunting rates have significantly dropped.
Livelihood diversification has also been central. The company began with just four coffee farmers, offering training, market access, and quality improvements. The initiative has since expanded to more than 30 farmers, with their coffee and honey products even showcased at governor-led bazaars. “We realised that in forests, you cannot build fences — you must build bridges,” Handoko said, noting how empowering communities has directly reduced illegal logging and forest fires.
Indeed, incidences of fire within PLUM area have declined, thanks to the project’s forest protection and fire prevention patrols. To further address fire risk, the project also collaborates closely with local communities and runs awareness campaigns. Wildlife protection has also emerged as a priority, with the project safeguarding orangutans and other threatened species.
Unlike many short-term projects, PLUM is underpinned by a 60-year concession license, which Hutan Kencana chose despite the steep upfront costs. This ensures continuity and prevents land-use change.
“That decision binds us for six decades,” Handoko explained. “It is about proving seriousness — not just to the government and investors, but to our children.”
Over the course of its lifetime, the project is expected to reduce or remove more than 37.5 million tonnes of carbon dioxide, representing one of the larger privately-led climate mitigation initiatives in Indonesia.
Navigating policy shifts and carbon markets
When Handoko first embarked on this transition, Indonesia’s policy environment for carbon projects was uncertain. But recent developments, including Indonesia’s commitment under the Paris Agreement, revisions to presidential decrees to include voluntary markets, and a bilateral deal with Japan under the Joint Crediting Mechanism, have improved the outlook.
The Government has already signed a mutual recognition agreement (MRA) with Gold Standard, with more certifications expected. Still, Handoko cautions that voluntary carbon markets remain nascent. “It’s a growing process. Mistakes will happen, but what matters is learning and improving,” he said.
Private sector’s role in regenerative landscapes
Private sector-led restoration projects remain rare in Indonesia, but Handokosees enormous untapped potential. He stresses that forest ownership alone does not translate into carbon value. “Carbon projects must demonstrate additionality,” he explained. “It’s not enough to have land — you must prove that your actions go beyond business-as-usual.”
This means committing capital, absorbing risks, and showing evidence of impact. Hutan Kencana, for instance, self-financed much of the early project work — from biodiversity surveys to community health programmes — before attracting partners.
“It’s about putting skin in the game,” Handoko said. “Investors need to see commitment before they come in.”
Towards Indonesia’s low-carbon transition
Handoko’s story is emblematic of a broader shift in Indonesia’s business landscape, where traditional extractive models are increasingly questioned. His conviction is that the private sector must be more than a beneficiary of climate finance; it must be a driver of regenerative change.
“The world is moving beyond extractive business. Companies must be profitable, yes, but they must also have a positive impact on communities, biodiversity, and the climate,” he said.
From battling skepticism within his family to winning recognition from government agencies and international certifiers, Handoko’s journey underscores both the challenges and opportunities facing Indonesia as it seeks to align economic growth with environmental stewardship.
For now, his focus remains clear: proving that sustainable business models built on restoration can deliver climate impact and community prosperity — together.
