Ecobiz.asia — Indonesia’s Ministry of Forestry has issued a new regulation aimed at simplifying carbon pricing mechanisms in conservation areas, revising rules introduced just months earlier to reduce bureaucratic barriers and improve market implementation.
The new regulation, Minister of Forestry Regulation No. 7/2026, amends Regulation No. 27/2025 on the utilization of environmental services in nature reserves, conservation areas, and game reserves. The updated rule was signed on April 20, 2026, replacing provisions issued on December 11, 2025.
According to an analysis by Veritask.ai, the revised regulation removes several provisions previously considered obstacles to carbon trading, including the prohibition on transferring ownership of carbon credits and the requirement for Environmental, Social, and Governance (ESG) certification.
Under the new framework, businesses are still required to demonstrate competence in applying ESG principles, but formal certification is no longer mandatory.
The regulation also eliminates the requirement for prior approval or recommendation from the Minister of Forestry before engaging in carbon trading, both domestically and internationally. Instead, carbon market activities are now governed by prevailing laws and regulations under Indonesia’s broader carbon pricing framework.
Despite the deregulation, the government maintains that tradable carbon credits must originate from verified climate mitigation actions carried out by permit holders. The sale of carbon stock not generated through such activities remains prohibited.
In addition, the regulation simplifies restrictions on carbon trading under greenhouse gas (GHG) offset mechanisms. Previously covering multiple conditions, the scope is now limited to four categories: compliance obligations, watershed rehabilitation, corporate social responsibility programs, and partnerships to strengthen conservation area functions.
The new rule also introduces updated definitions related to fees and levies for carbon-based environmental services and reaffirms that foreign business entities participating in Indonesia’s carbon market must comply with national legal requirements.
Through this revision, the government aims to accelerate the implementation of carbon pricing in conservation areas while maintaining environmental integrity, ecosystem sustainability, and legal certainty for market participants. ***
