by Setyawati Fitrianggraeni and Tiara Amanda Putri
Overview
The Government has issued Minister of Forestry Regulation No. 6 of 2026 as the implementing regulation of Presidential Regulation No. 110 of 2025.(1) This regulation aims to strengthen the governance of carbon trading in the forestry sector, ensuring it is credible, transparent, and inclusive.(2) This regulation integrates a nesting framework to prevent double-counting and to align the FOLU Net Sink 2030 target with the development of a green economy.(3)
While the industry welcomes this regulation for providing greater investment certainty, experts highlight the need for stronger legal harmonization in conservation areas to safeguard ecological integrity.(4) Through digitalized services, the Government aims to increase the participation of local and indigenous communities, supported by strict and transparent validation standards. With this new regulation, the Government expects carbon trading in the forestry sector to be more effective, attract stronger investment interest, and help Indonesia accelerate its emission reduction targets.(2)
Key Highlights
- Minister-Led Roadmap for Forestry Carbon Trading
Based on Article 2, the Minister of Forestry is responsible for implementing carbon trading through GHG emission offsets in the forestry sector. The Minister is also required to develop and officially establish a carbon trading roadmap, which will serve as the main policy direction for its implementation. In preparing this roadmap, the Minister will assign a senior official responsible for formulating and implementing policies on sustainable forest management.(1)
- Mandatory Community Safeguards and Social-Environmental Protection
Businesses conducting forestry-sector carbon trading through GHG emission offsets must apply strong social, environmental, and governance safeguards to prevent negative impacts on the environment, indigenous peoples, local communities, and vulnerable groups surrounding the carbon project area. This obligation must be implemented through Free, Prior, and Informed Consent (FPIC) (Persetujuan Atas Dasar Informasi Awal Tanpa Paksaan/Padiatapa) and the preparation of a fair and transparent carbon benefit-sharing agreement. Reports on the implementation of these safeguards and benefit-sharing arrangements must be submitted regularly to the Minister for evaluation, to ensure the welfare of communities living around forest areas.(1)
- Nesting Framework and Control of International Carbon Transfers
The Government adopts a nesting framework to align project-level mitigation actions with national and jurisdictional accounting systems, ensuring environmental integrity and preventing double-counting. The Minister and Governors also regulate international carbon transfers by requiring Authorization and Corresponding Adjustment for any carbon units transferred abroad.(1) This framework ensures that all international carbon trading remains aligned with Indonesia’s national emission reduction targets.(2)
References
1. Minister of Forestry No. 6 of 2026 on Procedures for Carbon Trading through Greenhouse Gas Emission Offsets in the Forestry Sector.
2. Prihatini Z, Jatmiko BP. Kompas.com. 2026. Kemenhut Terbitkan Aturan Baru Perdagangan Karbon, Disebut Lebih Jelas dan Terarah. Available from: https://lestari.kompas.com/read/2026/04/16/100400586/kemenhut-terbitkan-aturan-baru-perdagangan-karbon-disebut-lebih-jelas-dan
3. Siaran Pers Kementerian Kehutanan Nomor: SP. 124/HKLN/04/2026. 2026. Indonesia Perkuat Kerangka ‘Nesting’ untuk Dongkrak Investasi Pasar Karbon Hutan Global. Available from: https://www.kehutanan.go.id/news/indonesia-perkuat-kerangka-nesting-untuk-dongkrak-investasi-pasar-karbon-hutan-global
4. Mordekhai J, Rivaldhy MM. Kajian Hukum terhadap Tata Kelola Perdagangan Karbon pada Kawasan Taman Nasional. Proceeding Legal Symposium. 2026 Mar 16;4(1):435–47. doi:10.18196/pls.v4i1.239
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