Indonesia carbon trading reforms restore investor trust

Jakarta (ANTARA) - A non-profit organisation The Reform Initiatives (TRI) stated the Ministry of Forestry's carbon trading reforms have restored confidence among investors, project developers, and potential international buyers.

In a statement received here on Sunday, Executive Director of TRI Hadi Prayitno said a policy shift brought by revising a Presidential Regulation Number 98/2021 into Presidential Regulation Number 110/2025 marks a turning point for carbon trading development in Indonesia.

"This policy transformation was spearheaded by the forestry minister, alongside the president's special envoy for climate change control and the coordinating minister for food affairs, who serves as the steering committee chairman," Prayitno said.

Under the new rule, he added, the carbon project owners and developers could register their projects through international registries or the National Registry System for Climate Change Control (SRN-PPI).

Before the revised regulation applied, Prayitno said developers were strictly required to register their projects with the SRN-PPI.

The restriction burdened businesses, as Indonesia lacked adequate methodologies at the time, leaving the resulting carbon credits unappealing to the international market.

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Furthermore, carbon projects were previously barred from trading until Indonesia achieved its 2030 Nationally Determined Contribution (NDC) target for greenhouse gas emissions reduction.

The condition had triggered complaints from investors and carbon project developers. Consequently, the revised presidential regulation was seen as a key milestone towards providing legal certainty and restoring market confidence.

TRI also lauded the Indonesia's Ministry of Forestry decision to issue Ministerial Regulation Number 6/2026, which governs carbon trading procedures in the forestry sector, as a positive move that replaces the previous framework.

In addition, the Ministry has reinstated carbon credit units from forestry sector projects that had been previously suspended.

The policies provided a positive signal to the international market, he noted, particularly in restoring global trust in Indonesia as legal certainty becomes clearer.

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Translator: Asep Firmansyah, Raka Adji

Editor: Fransiska Ninditya

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