- Regulation: MOF Reg 6/2026
- Issued: 13 April 2026
- Previous Regulation: MOEF Reg 7/2023
- Sector: Forestry Carbon Trading
What Is This Regulation?
Ministry of Forestry Regulation No. 6 of 2026 on Procedures for Carbon Trading Through GHG Emissions Offsetting Within the Forestry Sector (MOF Reg 6/2026) is Indonesia's current framework governing carbon trading in the forestry sector. This regulation was issued on 13 April 2026 as the implementing regulation of the Presidential Regulation No. 110 of 2025 on the Governance of Carbon Economic Value Instruments for the Achievement of Nationally Determined Contribution Targets and Control of Greenhouse Gas Emissions in National Development (PR 110/2025).
Under MOF Reg 6/2026 outlines the requirements for generating, validating, registering, and trading forestry-based carbon credits, including for both domestic and international transactions.
Why Does This Matter?
This regulation affects anyone involved in Indonesia's forestry carbon market, including:
- Companies looking to purchase or develop carbon offsets from Indonesian forests
- Forest concession holders, social forestry groups, and customary communities
- Carbon project developers and intermediaries
- International buyers
Background
MOF Reg 6/2026 was enacted as the implementing regulation of PR 110/2025 which replaced Presidential Regulation No. 98 of 2021 on the Implementation of Carbon Economic Value to Achieve Nationally Determined Contribution Targets and Control over Greenhouse Gas Emissions in Relation to National Development (PR 98/2021). The table below outlines the key differences between the two Presidential Regulations and provides context for the new regulation.
| Aspect | PR 98/2021 | PR 110/2025 |
| Registry system | Uses only the SRN PPI, as the single national registry for NDC | Uses SRN PPI together with SRUK a dedicated carbon unit trading registry added under SRN |
| International trading | Provided two pathways: SPE and MRA (SPE + international registry) | Provided two pathways: Authorized (with corresponding adjustment) and Non-authorized (voluntary). |
| NDC linkage | Carbon trading through international markets does not reduce NDC achievement by 2030 | Carbon trading can proceed without waiting for NDC achievement, effectively enabling a continuous exchange process |
| Cross-border rules | International trading may occur at any time without waiting for NDC target | The authorized pathway requires government approval through Corresponding Adjustmeny, while the voluntary pathway does not require Corresponding Adjustment. |
| Carbon body | Governance spread across ministries | Establishes the Steering Committee on Carbon Economic Value (Komite Pengarah Nilai Ekonomi Karbon), under the Coordinating Minister for Food Affairs. |
Key Shift in a Nutshell
Under PR 98/2021: Trading required specific MRA-based pathways and was constrained by NDC timeline.
Under PR 110/2025: Carbon trading is no longer linked to NDC timelines and the distinction now lies between Authorized and Voluntary transactions.
- Authorized transfers count toward the buying country's NDC and require Indonesian government approval
- Voluntary transfers offer greater flexibility as they do not require Corresponding Adjustment and are excluded from NDC accounting
- MOF Reg 6/2026 operationalizes this PR 110/2025 architecture specifically for the forestry sector.
Source: Socialization by the Ministry of Forestry on MOF Reg 6/2026
Key Change 1 — Only One Trading Mechanism Now Allowed
Previous Regulation (MOEF Reg 7/2023)
Allowed TWO mechanisms:
- Emissions Trading (cap-and-trade-style)
- GHG Emissions Offsetting
New Regulation (MOF Reg 6/2026)
Allows ONLY ONE mechanism:
GHG Emissions Offsetting (Offset GHG Emissions)
New Registration Platform: SRUK Replaces SRN PPI
All forestry carbon projects must now be registered on the SRUK
- During the transition, registration continues through the Ministry of Forestry's internal system
- SRUK aligns with the broader NEK framework under PR 110/2025
- Projects must ensure documents are migrated to SRUK once it is operational
- Indonesia's national SRUK is set to go live by end of June 2026, with large-scale trading expected to begin July 2026. The government confirmed SRUK will ensure transparency and prevent double counting. 70 million tonnes of CO2 are ready to be traded.
Key Change 2 — Types of Carbon Credits
Under the new framework, there are two types of forestry carbon credits as set out in the table below:
International Standards Recognized for Non-SPE GRK Credits
Indonesia has accepted the following international certification standards for Non-SPE GRK units in the forestry sector. Project developers may pursue certification under any of these recognized bodies:
- Verra VCS — the world's largest voluntary carbon crediting program
- Gold Standard
- Plan Vivo
- Other internationally recognized standards approved by the MOF
This means Indonesian forestry projects can access the global voluntary carbon market while remaining compliant with national regulations. Certification under these standards, combined with the MOF's approval, allows Non-SPE GRK credits to trade internationally.
Key change 3 — Who can participate?
The new regulation clarifies which entities may develop and trade forestry carbon credits:
Type of Participant
- PBPH holders and other forest utilization rights
- Social forestry approval holders
- Customary law communities (Masyarakat Hukum Adat) with legally recognized forest status
- Private forest rights holders (Hutan Hak)
- PB-PJL Karbon holders
The recognition of PB-PJL Karbon holders constitutes one of the notable additions under this regulation. MOF Reg 6/2026 also clarifies the allocation of responsibility in cooperative arrangements. Where PBPH holders or PB-PJL Karbon holders engage third parties to implement mitigation activities or facilitate carbon trading, the relevant permit holder remains the party responsible for regulatory compliance and the conduct of carbon trading activities. This provision is relevant for project structuring, particularly in relation to liability allocation, operational control, and contractual risk-sharing arrangements.
Assistance Requirement
MOF Reg 6/2026 imposes an assistance requirement for certain participant categories, namely holders of Social Forestry Management Approvals, recognized customary law communities, and PB-PJL Karbon holders. These entities must be accompanied by registered facilitators or partners when participating in carbon trading activities. While the regulation does not comprehensively define the role of such facilitators, they are generally expected to provide technical and administrative support, including carbon measurement, project documentation, implementation planning, and market access.
Procedures for Forestry Carbon Offset
International Carbon Trading
Eligible Land Areas — Carbon Projects
Carbon credits can be generated from mitigation activities in the following areas:
- Permanent Production Forest including convertible production forest and/or utilization blocks of Protected Forest Areas
- Utilization Zones/Blocks of Nature Conservation Areas and Hunting Parks
- Customary Forests (Hutan Adat) — communities must have legally recognized customary status
- Private Forests (Hutan Hak)
- State land outside designated forest areas
Further, MOF Reg 6/2026 also reformulates the categories of land areas eligible for forestry carbon projects. Carbon units may be generated from mitigation activities undertaken in licensed production forest areas, designated utilization zones or blocks within certain conservation areas and game reserves that are not subject to prior rights or cooperation arrangements, Customary Forests, Private Forests, and state land outside designated forest areas.
Transition Period — What Existing Projects Must Do
6 (six) month adjustment period
Deadline: 13 October 2026.
All existing projects at any of the following stages must report and comply:
- Validation stage
- Implementation stage
- Verification stage
- Pre-transaction stage
- Existing carbon unit holders
1 (one) year deadline for new roadmap
A new forestry sector carbon roadmap must be issued within 1 year of enactment.
In the meantime:
- May refer to MOEF Decree SK.1027/MENLHK/PHL/KUM.1/9/2023
- Registration continues through MOF’s internal system until SRUK is ready
Latest Developments — Indonesia Carbon Market Update
Several significant developments are shaping Indonesia's carbon market landscape alongside MOF Reg 6/2026:
Governance | January 2026
Proposal: A Dedicated National Carbon Body
Presidential Special Envoy for Trade Mari Elka Pangestu has proposed the creation of a dedicated Carbon Authority to coordinate NEK implementation, green investment, and cross-sector carbon policy. She noted that current governance structure is spread across multiple ministries under Coordinating Minister for Food Affairs. This may create inconsistency and investor uncertainty.
Global | January 2026
Indonesia Joins Coalition to Grow Carbon Markets
On 20 January 2026, Indonesia formally joined the Coalition to Grow Carbon Markets as its 11th government member, announced by Forestry Minister Raja Juli Antoni in London alongside the UK-Indonesia Strategic Partnership. The coalition aims to unlock over USD 50 billion in climate finance annually by 2030.
FINANCING & CARBON MARKETS | APRIL 2026
DevvStream Secures Exclusive PLN IP Solar Carbon Credit Partnership.
DevvStream Corp., a carbon management firm focused on monetizing environmental assets such as carbon credits, announced an exclusive agreement with PT PLN Indonesia Power, a sub-holding of PT PLN, to manage and commercialize carbon credits from PLN IP’s solar portfolio in Indonesia. The mandate covers 45 solar power plants and includes end-to-end services from validation and certification to registration and liquidation, under a revenue-sharing structure aligned with Indonesia’s clean energy transition.
Financial Regulation | April 2026
OJK Revising POJK 14/2023 Carbon Trading Rules
OJK Chair Friderica Widyasari Dewi confirmed OJK is revising POJK No. 14 of 2023 on Carbon Trading through the IDXCarbon, with the revised regulation targeted for completion by June 2026. The revision is co-developed with IDX and aligns with MOF Reg 6/2026 and PR 110/2025.
Read more:
→ Indonesia joins global coalition to grow carbon markets — Jakarta Globe
→ Mari Elka proposes a Badan Karbon — Kumparan
→ OJK revising POJK 14 carbon trading rules — Ecobiz Asia
→ DevvStream Secures Exclusive PLN IP Solar Carbon Credit Partnership – Antara News
What Should You Do Now?
Market Entry Companies
- If you are new to Indonesia's forestry carbon market:
- Verify your eligibility — confirm which participant category you fall under
- Identify your land area — check whether your forest area qualifies under the new rules
- Determine your credit type — domestic (SPE GRK) or international (non-SPE GRK)?
- Engage a facilitator early — especially for social forestry or customary community categories
- Prepare DRAM or DPP — engage specialists familiar with Indonesian forestry carbon standards
- Plan for SRUK — ensure your document management can interface with SRUK from June 2026
Advanced Project Developers
If you have active or planned projects:
- Review your current project status — identify which transition window applies
- Update project documents — DRAM/DPP must align with MOF Reg 6/2026
- Audit contractual arrangements — review liability allocation where third-party operators are involved
- Assess compliance history — the Minister may consider sanctions record when granting recommendations
- Monitor SRUK and OJK — SRUK goes live June 2026; revised POJK 14 expected same month
Key Terms
| Term | Meaning |
| CA | Corresponding Adjustment |
| DPP | Project Design Document (Dokumen Perencanaan Proyek) |
| DRAM | Mitigation Action Design Document (Dokumen Rancangan Aksi Mitigasi Perubahan Iklim) |
| GHG | Greenhouse Gas |
| IDXCarbon | Bursa Efek Karbon |
| MOF | Ministry of Forestry (Kementerian Kehutanan) |
| MOF Reg 6/2026 | Ministry of Forestry Regulation No. 6 of 2026 on Procedures for Carbon Trading Through GHG Emissions Offsetting Within the Forestry Sector |
| MOEF Reg 7/2023 | Ministry of Environment and Forestry Regulation No. 7 of 2023 on Procedures for Carbon Trading in the Forestry Sector |
| MRA | Mutual Recognition Arrangement |
| NDC | Nationally Determined Contribution |
| NEK | Carbon Economic Value (Nilai Ekonomi Karbon) |
| Non-SPE GRK | Internationally certified carbon units (e.g. Verra VCS, Gold Standard, Plan Vivo) |
| PBPH | Forest Utilization Business License (Perizinan Berusaha Pemanfaatan Hutan) |
| PB-PJL Karbon | Carbon Environmental Services Utilization Business License (Perizinan Berusaha Pemanfaatan Jasa Lingkungan Karbon) |
| POJK 14/2023 | Financial Services Authority Regulation No. 14 of 2023 on Carbon Trading through Carbon Exchange |
| SPE GRK | Greenhouse Gas Emission Reduction Certificates (Sertifikat Pengurangan Emisi Gas Rumah Kaca) |
| SRN PPI | National Registry System for Climate Change Mitigation (Sistem Registri Nasional Pengendalian Perubahan Iklim) |
| SRUK | Carbon Unit Registry System (Sisterm Registri Unit Karbon) |
| UNFCCC | United Nations Framework Convention on Climate Change |
| Verra VCS | Verra Verified Carbon Standard |
What’s Next?
We will continue to closely monitor ongoing legal developments in Indonesia and keep you updated as new information emerges. With many new legal regimes still being rolled out, many areas are still being aligned and synchronised.
S&T is well-positioned to provide guidance and practical support to help you navigate these changes with confidence. If you would like any assistance, please feel free to contact us.