The government commits to reduce emissions in the energy sector by using new and renewable energy by targeting the development of geothermal power plants (GPP) of 7,241.5 MW in 2025. Approximately 58% of geothermal potential is in forest areas with a carbon absorption function. This study will calculate the potential loss of carbon stock and the economic valuation of the carbon sequestration function in forest areas. The location of study is Mount Ciremai National Park (MCNP). The study was conducted on 4022.37 hectares which will be used as the location of the initial study and geothermal exploration area. The potential area of GPP location is divided into: avoid area, minimize area, restore area, and utilization area, considering the land slope level and zoning. The potential carbon stock lost due to the entry of the GPP project in MCNP is 168,311.99 tons of CO2, or 17.95% of the total potential carbon stock in the study area. The economic valuation of carbon stocks using the economic value of carbon is Rp. 5,049,359,810.00. This value is the cost of externalities as compensation for carbon loss from land conversion activity. It should include as input to the economic analysis of geothermal project development.@en

In 2019, Indonesia has installed about 2.13 GW of geothermal and made it the second largest country utilizing geothermal. However, the capacity is less than 10% of the total potential and far from the target of 9.3 GW in 2030. A challenge in geothermal development is the environmental issue where more than 50% of the potential is located in conservation and protected forests. Recently, a regulation has been issued allowing geothermal development in those areas. A study to design a model of the forest area management for geothermal development was carried out in the Mount Ciremai National Park by identifying inventorying and evaluating the changes in forest zone utilization. There are three approaches applied in the study: ecology, social, and technical designs. The forest area management model was developed through stages, i.e., clustering of forest utilization and analysis of ecosystem, social activity, and area management alternatives. It is recommended that areas should be avoided are the core zone of the national park, nature preserve, areas that are indicated as important flora and fauna habitats, primary forests, and steeply sloped areas. It is about 1,369 Ha of the area that can be used for geothermal development.@en