Ecobiz.asia – Indonesia’s Ministry of Agriculture is drafting regulations to establish a carbon trading framework for the agriculture sector, paving the way for carbon offset projects in rice cultivation, plantations and livestock while requiring project developers to involve farmers through formal partnership schemes.
The proposed regulation, obtained by Ecobiz.asia, would implement Article 64 of Presidential Regulation No. 110 of 2025 on Carbon Economic Value Instruments and National Greenhouse Gas Emissions Control.
Under the draft, agricultural carbon projects may be developed by private companies, central and regional governments through jurisdictional programs, and farmer organizations. Private-sector developers would be required to partner with farmer institutions when implementing carbon offset projects.
The regulation outlines the full project development process, requiring developers to prepare a Mitigation Action Design Document (DRAM) before seeking approval through Indonesia’s Carbon Unit Registry System (SRUK).
The document must include project design, emissions accounting methodologies, baseline emissions data, land legality, monitoring plans, and environmental and sustainable development impact assessments.
Projects would then undergo independent validation and verification by accredited bodies before becoming eligible to receive Greenhouse Gas Emission Reduction Certificates (SPE-GRK), which can be traded as carbon credits.
The draft identifies a wide range of eligible mitigation activities, including low-emission rice cultivation, improved water management, low-emission crop varieties, balanced fertilizer application, livestock waste management, agroforestry, biochar application, rehabilitation of degraded agricultural land, and conservation farming practices.
The proposed regulation also opens the door for agricultural carbon credits to participate in international carbon markets.
Projects seeking authorization under Article 6 of the Paris Agreement, including the application of corresponding adjustments, would require approval from the Minister of Environment based on a recommendation from the Minister of Agriculture.
The provision is intended to safeguard the integrity of Indonesia’s national carbon accounting system while preventing double counting of emissions reductions.
In addition, the regulation establishes requirements for project monitoring, reporting, evaluation and benefit-sharing mechanisms involving local communities.
Implementation of the agricultural carbon trading framework will begin only after the government establishes supporting technical teams, technical guidelines, and electronic systems.
Once finalized, the regulation would make agriculture the second sector in Indonesia to adopt a dedicated carbon trading framework under Presidential Regulation No. 110 of 2025.
Earlier this year, the Ministry of Forestry issued Ministerial Regulation No. 6 of 2026, providing the country’s first operational framework for carbon trading through greenhouse gas emission offsets in the forestry sector. ***
