Strategic steps taken by the Ministry of Forestry in reforming carbon trading policies in Indonesia are beginning to yield tangible results. Executive Director of The Reform Initiatives (TRI), Hadi Prayitno, stated that a series of regulatory updates has successfully restored the confidence of investors, project developers, and prospective carbon credit buyers in the international market.
The turning point of this shift is reflected in the regulatory transition from Presidential Regulation (Perpres) No. 98 of 2021 to Perpres No. 110 of 2025. This crucial change allows project developers to register their initiatives not only through the National Registry System for Climate Change (SRN-PPI), but also through international registry systems recognized by the global market.
Previously, business actors faced significant hurdles due to limitations in national methodologies and the requirement to meet Nationally Determined Contribution (NDC) targets before carbon credits could be traded. These obstacles created legal uncertainty, making the investment climate less conducive for global players requiring high transparency standards.
Hadi added that the step taken by Forestry Minister Raja Juli Antoni in issuing Forestry Ministerial Regulation No. 6 of 2026 serves as a vital complementary instrument. This policy not only regulates carbon trading procedures in the forestry sector more comprehensively, but also re-recognizes carbon credit units that were previously stalled, thereby providing stronger market certainty.
While appreciation is given for the improved investment climate, the government is still encouraged not to stop innovating. Moving forward, the focus is expected to expand toward strengthening local and indigenous community-based carbon projects, particularly those located in social forestry and customary forest areas, to ensure the economic benefits of carbon trading reach the grassroots level.
