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ARTICLE · 06 FEBRUARY 2026

Indonesia Introduces New Carbon Trading Framework Under Presidential Regulation No. 110 Of 2025

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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...

IndonesiaEnvironment
Denny Rahmansyah
Denny Rahmansyah
Axel Cross
Axel Cross
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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

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