Industry Welcomes Indonesia’s New Forestry Carbon Trading Regulation

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Ecobiz.asia — Industry players have welcomed Indonesia’s issuance of Forestry Minister Regulation No. 6/2026, saying it provides greater certainty and strengthens the foundation of the country’s forestry carbon market.

Speaking at a forum titled “Decoding Permenhut 6/2026: Implications for Indonesia’s Carbon Market” in Jakarta on Monday (April 21, 2026), stakeholders from the government, the Indonesian Chamber of Commerce and Industry, and carbon project developers described the regulation as a key instrument to accelerate the green economy.

Senior Advisor to the Forestry Minister, Edo Mahendra, said the regulation carries three main objectives: implementing Presidential Regulation No. 110/2025, ensuring the sustainability of carbon projects, and balancing environmental targets with economic growth.

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“We are ensuring Indonesia is at the forefront of the global carbon market, not merely a follower. We will continue to build credibility by fulfilling all required components,” he said.

Vice Chairwoman of the Indonesian Chamber of Commerce and Industry, Shinta Kamdani, emphasized that the success of the carbon market depends not only on regulation but also on trust and coordination among stakeholders.

“Close collaboration between the government, project developers, and financial institutions is key to driving implementation on the ground,” she said.

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A similar view was expressed by Dharsono Hartono, Vice Chairman for Environment at the chamber, who described the regulation as a milestone in strengthening Indonesia’s carbon market architecture.

“As Southeast Asia’s largest economy, this policy will have a significant impact on regional and international market confidence,” he said.

The discussion, moderated by Forestry Ministry spokesperson Ristianto Pribadi, highlighted several key provisions in the regulation, including clearer criteria for project developers, procedures for issuing forestry carbon credits, and mechanisms for participation in international markets, including corresponding adjustment. Strengthened environmental and social safeguards, as well as dispute resolution mechanisms, were also seen as critical to maintaining market integrity.

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However, industry players urged the government to quickly introduce implementing regulations, particularly on project risk management and long-term investment certainty.

Meanwhile, Steven Marcelino of the ASEAN Alliance on Carbon Market said the regulation could attract greater green investment into Indonesia.

“Strong private sector interest in this regulation will help drive increased investment flows,” he said. ***

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