Indonesia has introduced a new carbon trading framework through
Presidential Regulation No. 110 of 2025, dated October 10, 2025, on
the Implementation of Carbon Economic Value and National Greenhouse
Gas Control ("PR 110/2025"). The
Regulation sets out the basis for Indonesia's updated carbon
trading regime and reflects the government's commitment to
strengthening market-based mechanisms for emissions reduction.
PR 110/2025 replaces the earlier framework under Presidential
Regulation No. 98 of 2021 on the Implementation of Carbon Economic
Value for Achieving Nationally Determined Contribution
("NDC") Targets and Greenhouse Gas
Control in National Development ("PR
98/2021").
Notably, Article 58(1) of PR 110/2025 expressly provides that
carbon trading activities may be conducted prior to the achievement
of Indonesia's NDC targets. This provision signals
Indonesia's growing interest in accelerating the development of
its carbon market and attracting broader