Social Forestry has big potential in carbon trading, with an estimated contribution up to 16.80 million tCO₂e per year, particularly in forest protection, restoration, and peatland management. A systematic approach needs to be implemented through the identification of priority areas based on IAD and the bundling of PS units. This approach aims to ensure a fair and inclusive carbon trade. The approaches involved strengthening the regulatory framework to recognize community carbon rights and aligning the national registry system with international standards. Furthermore, pushing a pilot project scheme as “beyond carbon” like biodiversity credit, can widen the social and ecological value in Social Forestry. This set of recommendations shows that carbon trading based on Social Forestry is not only an environmental opportunity, but also a strategic way to improve community welfare and secure the national climate target. This policy brief is worthy of follow-up as it targets fundamental and crucial reforms to open Indonesia’s carbon market in an inclusive, integrity-based, and justice-oriented manner.