Indonesia Expands Forest Carbon Trade Rules with New Regulation

RRI.CO.ID, Jakarta - The Indonesian government has officially issued Minister of Forestry Regulation No. 6/2026, which governs carbon trading procedures through greenhouse gas (GHG) emission offset schemes in the forestry sector. The regulation marks a significant step in advancing the country’s green economy agenda.

Minister of Forestry, Raja Juli Antoni, said the policy aims to boost governance in forest carbon trading. “The issuance of this regulation is a concrete step to ensure a more credible, transparent, and inclusive carbon market in the forestry sector,” he stated in Jakarta, Wednesday, April 15, 2026.

The regulation follows Presidential Regulation No. 110/2025 signed by President Prabowo Subianto, reinforcing Indonesia’s framework for carbon economic value. It is also designed to support the country’s emission reduction targets under its climate commitments.

Through this policy, the government introduces a clearer roadmap for carbon trading in forestry, including emission reduction targets and land coverage. The roadmap is aligned with Indonesia’s broader strategy to address climate change.

The regulation also broadens participation in carbon trading beyond corporations to include social forestry groups, indigenous communities, and private forest owners. This expansion is expected to create more inclusive economic opportunities while strengthening community involvement.

From a legal perspective, the policy provides greater certainty for market participants through standardized processes. Each carbon unit must undergo validation and verification by independent bodies and be recorded in a national registry to prevent double counting.

The government has also simplified business processes by introducing electronic systems for document submission, assessment, and certification. This approach is expected to accelerate services while improving transparency and efficiency.

In addition, the regulation governs international carbon trading, requiring government approval for cross-border transactions. “We want to ensure that carbon trading contributes not only to national climate targets but also delivers tangible benefits for communities and forest sustainability,” Raja Juli Antoni emphasized.