Forestry Minister Issues New Regulation on Carbon Trading, Here is Its Content
Forestry Minister Raja Juli Antoni has issued Forestry Ministerial Regulation (Permenhut) Number 6 of 2026 on the procedures for carbon trading through greenhouse gas (GRK) emission offset schemes in the forestry sector. This regulation aims to promote the green economy in Indonesia.
The issuance of this Permenhut represents a concrete step by the government to strengthen the governance of carbon trading in the forestry sector, making it more credible, transparent, and inclusive. “We want to ensure that the economic benefits of carbon not only contribute to achieving national climate targets but also provide real impacts for society and the sustainability of Indonesia’s forests,” said Raja Antoni in his statement on Wednesday (15/4/2026).
He stated that Permenhut 6/2026 is a follow-up to Presidential Regulation Number 110 of 2025, which was directly signed by President Prabowo Subianto. The Permenhut was issued to strengthen the implementation of carbon economic value (NEK) while supporting Indonesia’s emission reduction targets.
According to him, through this regulation, the government is making fundamental changes in the management of carbon trading in the forestry sector. One of them is by preparing a clearer roadmap, starting from emission reduction targets, the area involved, to achievement strategies that align with national commitments in addressing climate change.
In addition, Raja Juli said that this Permenhut expands who can participate in carbon trading. Not only companies, but also social forestry groups, indigenous communities, community forest owners, and carbon environmental service managers can now participate.
From a legal perspective, he said, this regulation provides clearer certainty for actors. Every carbon unit traded must go through a standardised process, such as validation and verification by independent institutions, and be recorded in the national system to avoid double counting.
Moreover, the business processes in carbon trading are now made simpler and more structured. Document submission, assessment processes, to certificate issuance are carried out electronically with predetermined service times. This is expected to accelerate the process while increasing transparency.
Furthermore, Raja Juli said that this Permenhut also regulates carbon trading abroad. Every international transaction must go through government approval to remain aligned with national emission target needs.
In its implementation, business actors are still required to pay attention to environmental and social aspects. Carbon trading activities must involve surrounding communities, protect indigenous rights, and maintain forest conservation and biodiversity.
In addition, he continued, conservation areas also have great potential in carbon trading through ecosystem restoration (ARR: Afforestation, Reforestation, and Revegetation) in deforested and degraded areas, with an area of around 1.27 million hectares in Nature Reserves, Nature Conservation Areas, and Hunting Parks, as well as carbon absorption potential of 4.5-50 tons CO2e per hectare per year. According to him, this potential opens up opportunities for innovative financing through private sector involvement while creating sustainable economic value.
“With this new regulation, the government hopes that carbon trading in the forestry sector can run more effectively, attract investment interest, and help Indonesia achieve emission reduction targets more quickly,” read his statement.