Ecobiz.asia — Indonesia has opened broader access to its carbon market following the issuance of Presidential Regulation (Perpres) No. 110 of 2025 on the Implementation of Carbon Economic Value (NEK) and National Greenhouse Gas (GHG) Emission Control, signed by President Prabowo Subianto on October 10, 2025.
The new regulation, consisting of nine chapters and 103 articles, replaces Presidential Regulation No. 98 of 2021, which had governed Indonesia’s carbon pricing and emission reduction mechanisms since 2021.
“The Presidential Regulation is intended to provide a legal framework for climate change mitigation through the implementation of the Carbon Economic Value instrument and national GHG emission control,” states Article 2(1) of the regulation, as quoted by Ecobiz.asia on Tuesday (Oct. 14, 2025).
According to the preamble, the previous regulation is no longer aligned with current legal and societal needs, prompting the government to issue an update.
The new regulation revises the mechanisms for managing the Carbon Economic Value (NEK) in greater detail and simplifies carbon trading procedures while maintaining strong governance standards.
Among the key new provisions introduced in Perpres 110/2025 is the concept of Carbon Allocation, defined as the amount of carbon dioxide equivalent (CO₂e) emissions permitted over a specific period in accordance with national capacity.
The regulation also establishes a Carbon Unit Registry System (SRUK), a new database separate from the National Registry System for Climate Change Control (SRN-PPI). SRUK will serve as the official platform for managing and tracking carbon unit data under the NEK framework.
By introducing SRUK, the government aims to streamline the carbon trading process and ensure interoperability with international carbon market standards.
Perpres 110/2025 also clarifies that carbon trading can proceed without waiting for Indonesia to meet its Nationally Determined Contribution (NDC) targets, as stipulated in Article 58(1). ***
