Overview
The Climate Change Management Bill establishes a legal framework to address climate change in Indonesia. The bill aims to protect the Indonesian people and territory while ensuring the fulfillment of human rights and Indonesia’s commitment to reducing greenhouse gas emissions in line with national development priorities. As an archipelagic state, the Bill provides an urgent legal framework to address Indonesia’s vulnerability to climate impacts, including sea level rise, food security risks, and threats to coastal livelihoods.(1)
Its urgency is reinforced by Indonesia’s status as the world’s second-largest emitter from land-use change and the absence of a master regulation integrating climate policies that remain fragmented across sectors.(2) The Bill also aligns with Sustainable Development Goal (SDG) 13 and integrates climate action into national development planning, including the RPJMN 2020–2024 and RPJPN 2025–2045, to advance low-carbon development and support Indonesia’s Net Zero Emission target.(3)
The Bill is grounded under Article 33 paragraph (3) and Article 28H of the 1945 Constitution, which requires natural resource management to support public welfare and a healthy environment. Its formulation applies Regulatory Impact Analysis (RIA) and the ROCCIPI framework. Through the principle of Common but Differentiated Responsibilities (CBDR), Indonesia also seeks to leverage international climate finance and technology transfer, including support from the Green Climate Fund, to address its climate funding gap and account for the ecological debt of developed countries’ historical emissions.(1)
Key Highlights
- Governance Transformation through the Climate Change Management Agency
The Bill establishes a Climate Change Management Agency as a central institution to coordinate national climate governance in an integrated manner. The agency is led by a coordinating minister appointed by the President and works in coordination with relevant ministries, agencies, and regional governments. Its functions include synchronizing national planning, implementing mitigation and adaptation measures, managing transparent climate data, issuing emission reduction certificates, and administering climate finance to support data-driven policymaking.(1)
- Implementation of Carbon Economic Value (NEK) and Financing Instruments.
The Bill introduces Carbon Economic Value or Nilai Ekonomi Karbon (NEK) as an economic instrument that assigns monetary value to each unit of greenhouse gas emissions to promote efficiency and decarbonization. Its implementation involves the central and regional governments, businesses, communities, and indigenous peoples, who are entitled to proportional benefits from carbon economy initiatives. The mechanism operates through carbon trading (both through carbon exchanges and direct transactions), carbon levies such as carbon taxes and excise, and result-based payment schemes supported by state and regional budgets as well as international funding.(1)
- Guaranteeing Rights in Relation to Loss and Damage.
The Bill establishes the state’s responsibility to provide protection, recovery, and fulfillment of rights for individuals affected by unavoidable climate-related loss and damage. Priority is given to vulnerable groups, including indigenous peoples, persons with disabilities, women, children, the elderly, farmers, fishers, and workers directly impacted by climate . Implementation is carried out through national policies that regulate loss assessment, claim verification, compensation mechanisms such as health and education support, and the establishment of dedicated funding schemes for affected communities.(1)
References
- Rancangan Undang-Undang tentang Pengelolaan Perubahan Iklim.
- Lalu Aria Nata Kusuma, Putra EAM, Fahrurrozi Iman Jayadi Syahid, Kwangtama Tekayadi S, Alfurqan I. Pembentukan Undang-Undang Perubahan Iklim: Langkah Responsif Menuju Keadilan Iklim. JATISWARA. 2024 Nov 30;39(3):311–30. doi:10.29303/jtsw.v39i3.739
- Leontinus G. Program dalam Pelaksanaan Tujuan Pembangunan Berkelanjutan (SDGs) dalam Hal Masalah Perubahan Iklim di Indonesia. Jurnal Samudra Geografi. 2022 Jan 31;5(1):43–52. doi:10.33059/jsg.v5i1.4652
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