Speaking at the Environmental, Social, Governance (ESG) Sustainability Forum 2026 in Jakarta in early February and reconfirmed in subsequent appearances through March 2026, President Prabowo’s Special Envoy for Climate and Energy, Hashim Djojohadikusumo, confirmed that Indonesia will bring its national carbon market into full operation by the end of June 2026, with large-scale transactions expected to begin in July. The roll-out is anchored in Presidential Regulation No. 110 of 2025 on Carbon Economic Value Instruments and National Greenhouse Gas Emission Control, which Hashim has described as a structural game-changer for the country’s carbon governance.

The regulation establishes the framework for emissions trading and carbon credit mechanisms, mandates the registration of all carbon units in the national Carbon Unit Registration System (SRN-PPI), introduces safeguards against double counting, and explicitly enables linkages between the domestic and international carbon markets through ministerial authorisation and corresponding adjustments. Authorities are currently finalising the integration of multiple existing carbon registries into a single national platform — viewed as a prerequisite for international acceptance. The reform is intended to address the disappointing performance of IDX Carbon, which between March and September 2025 recorded transactions worth only around USD 72,000 across 27,613 tCO2e. 

The government is working toward finalising a suite of derivative regulations on Carbon Economic Value (Nilai Ekonomi Karbon, or NEK) by March 2026, an effort framed as essential to restoring legal certainty and sustaining the fragile momentum of Indonesia’s nascent carbon market. The measures, to be codified through sector-specific ministerial regulations, are intended to ensure continuity during a managed transition period, allowing existing projects to proceed without disruption. The timeline was underscored by Coordinating Minister for Food Affairs Zulkifli Hasan, who, in a limited coordination meeting of the NEK steering committee, linked the initiative to the broader implementation of Presidential Regulation No. 110 of 2025 on NEK instruments and national greenhouse-gas control. Zulhas also highlighted the acceleration development of the Carbon Unit Registry System (SRUK) by the Ministry of Environment together with the Financial Services Authority and the Komrah Implementation Team which is targeted to be tested by the end of March 2026. “In the new scheme, carbon approvals and transactions are carried out through sectoral regulations and an integrated registry system. The Mutual Recognition Agreement mechanism is no longer needed, without reducing the standards of integrity and legal certainty,” Zulhas explained.

Sources: Antara News, 3 February 2026; Carbon Herald, February 2026; IEEFA – Two years after launch (October 2025);