Government Targets Carbon Trading Operations by July 2026
Jakarta — Indonesia’s government has targeted the operationalisation of national carbon trading to commence in early July 2026, in line with the acceleration of the implementation of Presidential Regulation No. 110 of 2025 concerning the Implementation of Carbon Economic Value Instruments and Control of National Greenhouse Gas Emissions.
This acceleration was discussed at a Limited Coordination Meeting (Rakortas) of the Carbon Economic Value (NEK) Steering Committee, chaired by the Coordinating Minister for Food Affairs Zulkifli Hasan (Zulhas) in his capacity as Committee Chair (Komrah).
“Presidential Regulation 110/2025 provides a decentralised governance mandate, whilst maintaining integrity, transparency, and legal certainty within Indonesia’s national and international carbon trading ecosystem,” Zulhas said in a statement on Friday in Jakarta.
He stressed that the acceleration of completing sectoral ministerial regulations is key to providing legal certainty for businesses whilst maintaining carbon market momentum.
According to him, clarity and simplification of process flows are priorities to avoid overlapping authority and improve ease of doing business. Sectoral regulations currently being processed are targeted for completion by March 2026.
The Rakortas also discussed the management of a transition period to ensure the smooth implementation of sectoral regulatory adjustments and the continuity of carbon trading projects already in progress and ready to undertake transactions.
Under the new governance framework, approval and carbon trading transactions will be conducted through regulations of the relevant sector ministries and an integrated registry system.
The government stated that the Mutual Recognition Agreement (MRA) mechanism is no longer required without diminishing the high integrity aspects of carbon units or legal certainty.
“Indonesia must move swiftly in high-integrity carbon trading, yet remain within strong legal and governance corridors to strengthen market confidence,” Zulhas said.
The Carbon Unit Registry System (SRUK), built by the Ministry of Environment and Forestry in conjunction with the Financial Services Authority (OJK) and the Komrah Implementation Team, and supported by the Climate Data Steering Committee (CDSC), serves as the backbone of transparency and accountability in Indonesia’s carbon trading. SRUK is targeted to enter the pilot testing phase by the end of March 2026.
The Rakortas was also attended by the Vice Chair of the People’s Consultative Assembly (MPR RI), presidential special envoys, the Minister of Environment and Forestry, the Minister of Forestry, several deputy ministers, and the acting Chair of the Financial Services Authority (OJK) Board of Commissioners.