Indonesian Political, Business & Finance News

New Regulation Issued, Indigenous Communities Can Participate in Carbon Trading

| | Source: REPUBLIKA Translated from Indonesian | Regulation
New Regulation Issued, Indigenous Communities Can Participate in Carbon Trading
Image: REPUBLIKA

The government is opening wider access to carbon trading in the forestry sector through a new regulation. This scheme now targets communities at the grassroots level, including forest farming groups and indigenous peoples. Forestry Minister Raja Juli Antoni stated that Ministerial Regulation No. 6 of 2026 provides more inclusive participation opportunities. “This carbon trading is open and inclusive. Not only the private sector, but also forest farmers, social forestry communities, and indigenous peoples can participate,” said Raja Juli on Wednesday (29/4/2026). Raja Juli explained that the regulation provides certainty for mechanisms that previously operated slowly. This regulation is a derivative of Presidential Regulation No. 110 of 2025 on the carbon market. “With this regulation, we hope that the mechanisms that previously ran slowly can be accelerated because there is now system certainty,” said Raja Juli. He added that the government is still preparing follow-up regulations to strengthen the carbon trading ecosystem, especially for voluntary schemes. Presidential Special Envoy for Energy and Climate Change Hashim Djojohadikusumo assessed that the issuance of this regulation shows that policy implementation is underway. “Now we are not just talking about policy, but have entered the operational stage through technical regulations from the Ministry of Forestry,” said Hashim. Hashim stated that this step has received positive responses in international forums, including at the Climate Change Conference (COP30) in Brazil. OJK Commissioner Chairman Friderica Widyasari Dewi said that OJK is helping to prepare supporting infrastructure for the carbon market. “We congratulate the step forward taken by the Ministry of Forestry. We at OJK strongly support the President’s programme,” said Friderica. Friderica mentioned that OJK is preparing a carbon unit registry system together with the Indonesia Stock Exchange. Internal regulatory adjustments are also being made to support the implementation of the carbon market.

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