Government Strengthens Indonesia's Carbon Market Ecosystem
The implementation of the carbon market in Indonesia is being strengthened following the issuance of Presidential Regulation (Perpres) No. 110 of 2025 on Carbon Economic Value, which replaces the previous Perpres No. 98 of 2021. Ary Sudijanto, Deputy for Climate Change Control and Carbon Economic Value Governance at the Ministry of Environment, stated that carbon trading is just one aspect covered by the new regulation, which also refines the overall architecture of carbon economic value in the country. “With Perpres 110, we are improving, perfecting, and strengthening the instruments needed to properly manage carbon economic value,” he said during the Ekoniklim Talkshow 2026 in Jakarta.
One of the latest developments following the regulation’s issuance is the launch of the National Carbon Unit Registry System (SRUK) on 9 July 2026. This system serves as the basis for recording all carbon units in Indonesia and is designed to integrate with sectoral registries and global carbon market mechanisms. In addition to developing the registry infrastructure, the government is accelerating the formulation of technical rules for carbon trading across various sectors. The Ministry of Forestry has already issued its own ministerial regulation, while similar rules for the energy and other sectors are currently being prepared.
Ary emphasised that the development of the carbon market must not undermine Indonesia’s emission reduction targets under the Nationally Determined Contribution (NDC). To ensure alignment, the government is drafting a carbon trading roadmap that will run parallel to the NDC achievement roadmap. He outlined three main pillars for national carbon market implementation: strengthening carbon governance in each sector, building market infrastructure including the SRUK and the carbon exchange, and enhancing the implementation of agreements to utilise carbon units, including through voluntary carbon trading and linkage to international markets under Article 6 of the Paris Agreement.