Regulatory Update: Implementation of Nationally Determined Contributions under the Minister of Environment/Environmental Control Agency Regulation No. 7 of 2026

by Tiyana Sigi Pertiwi and Tiara Amanda Putri

Overview

Minister of Environment/Environmental Control Agency Regulation No. 7 of 2026 (Permen LH/BPLH 7/2026) was promulgated and entered into force on 15 June 2026 to strengthen the implementation of Nationally Determined Contributions (NDC). This regulation revokes and replaces six previous regulations to align climate action governance with the new institutional structure and integrate the Carbon Economic Value (NEK) policy.(1)This regulation provides an important framework for regional governments to align local climate programs with national climate objectives, including by strengthening regional capacity to register climate change mitigation and adaptation actions through the National Climate Change Control Registry System (Sistem Registri Nasional Pengendalian Perubahan Iklim/SRN PPI).(2) Upon its promulgated on 15 June 2026, six previous regulations were officially revoked and declared no longer in force, including Minister of Environment and Forestry Regulation No. 12 of 2024.(2)

Summary Matrix

Provision	Key Summary
Articles 2-10	The Minister formulates and establishes the NDC in collaboration with relevant ministers, implementing it through climate change mitigation and adaptation measures. The NDC strategy is further detailed in the NDC Roadmap.
Articles 11-44	Mitigation is coordinated by the Minister through GHG emission inventories, GHG emission baselines, targets, and mitigation action plans. must submit inventory reports annually, no later than March.
Articles 45-77	Adaptation measures are implemented by relevant ministers, governors, and regents/mayors across the sectors of food, water, energy, health, and ecosystems. The process comprises an inventory of climate change impacts, the establishment of climate resilience baselines, the setting of climate resilience targets, and the formulation of adaptation action plans.
Articles 78–104	MRV for mitigation actions, adaptation actions, and Economic Value of Carbon (NEK) instruments is implemented in an integrated manner, and the parties responsible for the actions are required to record their implementation in the National Registry System for Climate Change Control (SRN PPI). Business actors must submit reports on mitigation actions once a year, no later than March.
Articles 105–112	Funding is sourced from the State Budget (APBN), Regional Budgets (APBD), and/or other legitimate sources. The established NDC baseline, targets, action plan, and Roadmap remain in effect insofar as they do not conflict with this regulation. Six existing regulations, including Regulation of the Minister of Environment and Forestry Number 12 of 2024, are revoked. This regulation enters into force on the date of its promulgation.

Key Highlights

NDC Formulation, Establishment, Strategy, and Roadmap
The Minister of Environment/Environmental Control Agency is authorized to formulate and establish the Nationally Determined Contribution (“NDC”) with the involvement of relevant ministers, based on Carbon Allocation and taking Carbon Reserves into account. NDC implementation is carried out through climate change mitigation and adaptation efforts, supported by technology transfer, capacity building, and funding. Its implementation follows nine strategic directions covering commitment, capacity, enabling conditions, communication networks, the One Data Policy for GHG Emissions and Climate Resilience, policy and program allocation, implementation guidelines, climate action, and monitoring. These strategies are further elaborated in the NDC Roadmap, which outlines baselines, emission reduction and climate resilience targets, action scenarios, governance, technology needs, and funding schemes. The National Mitigation NDC Roadmap is prepared by the Minister, while the Sub-National Mitigation NDC Roadmap is prepared by governors. The Adaptation NDC Roadmap is prepared by the Minister in coordination with relevant ministers and may be adjusted in the event of changes to baselines, NDC targets, methodologies, or government policies.(2)

Climate Change Mitigation Planning, Implementation, and Evaluation
Climate change mitigation is coordinated by the Minister and implemented by ministries/agencies, regional governments, Business Actors, and the public across six sectors: energy, waste, IPPU, agriculture, forestry, and marine and fisheries. Planning covers GHG emissions inventories, baselines, mitigation targets, and action plans. Business Actors must conduct inventories and submit annual emissions reports by March. However, the regulation does not stipulate specific sanctions for failure to comply with these reporting obligations. Governors must establish provincial baselines and action plans within the prescribed timeframes. Monitoring and evaluation are conducted every six months, with reports submitted by the relevant ministers and governors. The Minister reports the results to the President at least annually.(2)

Climate Change Adaptation Planning, Implementation, and Evaluation
Climate change adaptation is implemented by relevant ministers, governors, and regents/mayors at the national, provincial, and regency/municipal levels, covering five priority areas: food, water, energy, health, and ecosystems, as well as other areas such as marine and fisheries. Adaptation planning involves Climate Change Impact Inventories based on climate risk assessments, including hazards, vulnerability, and impacts, which serve as the basis for establishing Climate Resilience Baselines and national Climate Resilience Targets in the NDC. Adaptation Action Plans are subsequently developed at all levels with the participation of Business Actors and the public, and are subject to periodic monitoring and evaluation by integrated teams established by the relevant authorities.(2)

Transparency, MRV, and National Registry Framework
The achievement of NDC targets and implementation of Carbon Economic Value (“NEK”) instruments must be carried out accurately, consistently, and transparently through an integrated framework covering Measurement, Reporting, and Verification (“MRV”), the National Registry System for Climate Change Control (“SRN PPI”), the Carbon Unit Registry System, and the issuance of Indonesian GHG Emission Reduction Certificates/Non-Certificates. Action implementers, including Business Actors, are required to register the implementation of Climate Change Mitigation and Adaptation Actions in the SRN PPI through account registration, submission of general and technical data, and verification by the MRV Team established by the Minister. Business Actors must report the implementation of Mitigation Actions annually by March at the latest and record such actions in the SRN PPI as the basis for validating and verifying emission reduction data to obtain official recognition from the Government.(2)

Stakeholder Participation and Engagement
The Minister promotes the participation of relevant stakeholders, including Business Actors, government institutions, regional governments, communities, and other relevant parties, through public information, technical guidance, education, and awards in the form of trophies, certificates, and/or incentives. These measures aim to encourage parties that voluntarily achieve verified GHG emission reductions or exceed NDC targets.(2)

References

Hukumonline. NDC Framework Updated: Marine, Fisheries, Blue Carbon and Oil-and-Gas Sector Businesses Now Subject to Climate Mitigation Requirements. 2026 Jun. (Indonesian Legal Brief). Issue No. 5482. Available from: https://pro.hukumonline.com/a/lt6a3b3f763c0cd/ndc-framework-updated–marine–fisheries–blue-carbon-and-oil-and-gas-sector-businesses-now-subject-to-climate-mitigation-requirements
Regulation of the Minister of Environment/Environmental Control Agency No. 7 of 2026 on Implementation of Nationally Determined Contributions (NDC).

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