Carbon Reform by Forestry Ministry Seen as Restoring Investor Confidence

Jakarta (ANTARA) - Executive Director of The Reform Initiatives (TRI) Hadi Prayitno assessed that Forestry Minister Raja Juli Antoni’s move to reform carbon trading regulations has restored the confidence of investors, carbon project developers, and prospective carbon credit buyers in the international market.

According to Hadi, the policy change through the revision of Presidential Regulation (Perpres) Number 98 of 2021 into Perpres Number 110 of 2025 marks a turning point for the development of carbon trading in Indonesia.

“This policy transformation was driven by the Forestry Minister together with the President’s Special Envoy for Climate Change Control and the Coordinating Minister for Food Affairs as the Chair of the Steering Committee,” Hadi said in a statement in Jakarta, Sunday.

The new regulation allows carbon project owners and developers to register their projects through international registry systems as well as the National Registry System for Climate Change Control (SRN-PPI).

Hadi explained that before the revision was issued, project owners and developers were only permitted to register their projects with the SRN-PPI. This condition was seen as complicating matters for businesses because Indonesia lacked adequate methodologies, and the carbon credits produced were considered less attractive to the international market.

Hadi said this situation had previously triggered objections from investors and carbon project developers. Therefore, the revision of the Presidential Regulation is considered an important step to provide legal certainty while restoring market confidence.

He also noted that the Forestry Ministry’s issuance of Forestry Ministerial Regulation Number 6 of 2026, which governs carbon trading procedures in the forestry sector as a replacement for the previous rule, has had a positive impact.

Furthermore, the Forestry Ministry has re-recognised carbon credit units from forestry sector projects that were previously suspended.

“The role has been quite crucial, from accelerating the change of Perpres 98/2021 to Perpres 110/2025, issuing Forestry Ministerial Regulation Number 6 of 2026, to re-recognising carbon credit units from forestry projects,” he stated.

According to Hadi, this series of policies sends a positive signal to the international market, particularly in restoring global confidence in Indonesia, because legal certainty is now clearer and no longer ambiguous.