Indonesia Sets Carbon Registry Rules to Strengthen Traceability and Market Integrity

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Ecobiz.asia – Indonesia’s Ministry of Environment has issued a new regulation establishing the operational framework for the country’s Carbon Unit Registry System (SRUK), introducing stricter requirements for carbon credit traceability, interoperability, and transaction reporting as the government prepares to expand its national carbon market.

The regulation, Minister of Environment Regulation No. 10/2026, was signed on July 2 and provides the legal basis for operating Indonesia’s national carbon registry. The system is designed to ensure that carbon units can be tracked throughout their lifecycle while preventing double counting and supporting the country’s climate commitments under its Nationally Determined Contribution (NDC).

Under the regulation, SRUK will record carbon units, issue Greenhouse Gas Emission Reduction Certificates (SPE-GRK), register carbon credit transactions, monitor the status of carbon units, and facilitate data interoperability with other registry systems.

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The regulation requires SRUK to operate through a decentralized digital network that enables real-time, permanent, and traceable recording of carbon transactions. Each carbon unit will carry a complete ownership history and transaction record, allowing authorities to monitor every transfer and change of status.

To strengthen market integration, SRUK will be connected with Indonesia’s National Registry System for Climate Change Control (SRN PPI), the country’s carbon exchange, and other relevant registry and information systems. Carbon exchanges will also be required to establish integrated interfaces with SRUK to enable real-time updates of ownership records, transaction data, and carbon unit status.

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The regulation further requires all carbon credit transactions to be registered in SRUK. Transaction records must include the identities of the parties involved, the unique identification code of each carbon unit, the volume transferred, and supporting transfer documents.

For emissions offset transactions, registration must be completed no later than two working days after the transaction. Transactions that fail to meet this deadline will not be considered legally valid and cannot be counted toward Indonesia’s NDC.

To safeguard market integrity, the regulation prohibits any carbon unit from being issued, claimed, or used more than once. Carbon units registered in SRUK will be assigned one of four status categories—available, retired, suspended, or cancelled—to prevent duplicate use and unauthorized transactions.

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The regulation also provides transitional provisions for emissions reduction projects registered before the enactment of Presidential Regulation No. 110/2025. These projects may continue issuing carbon units with approval from the relevant sectoral ministry. Where interoperability with international registries has not yet been established, all certificate issuances and carbon credit transactions must still be independently recorded in SRUK within two working days.

The new regulation takes effect immediately upon its promulgation and forms part of Indonesia’s broader efforts to establish a transparent, internationally interoperable carbon market following the adoption of its updated carbon pricing framework. ***

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