October 20, 2025 | 03:18 pm
TEMPO.CO, Jakarta - People's Consultative Assembly (MPR) Vice Chair Eddy Soeparno believes that the economic value of carbon (NEK) will become a new source of income for Indonesia. According to him, NEK emerges as a new economic pillar amidst the government's efforts to boost revenue from taxes and customs duties. President Prabowo Subianto has issued Presidential Regulation (Perpres) Number 110 of 2025 concerning the Implementation of Carbon Economic Value (NEK) Instruments and Greenhouse Gas Emission Control.
"With the issuance of Perpres Number 110 of 2025, it is expected that there will be an acceleration in carbon trading because various problems that have so far hindered our activities in the carbon economy sector can be resolved," Eddy told reporters at the Ministry of Coordinating for Food office, Jakarta, on Monday, October 20, 2025. He mentioned that this new regulation also regulates international carbon trading, foreign carbon trading, and private carbon trading.
In addition, Eddy said, the regulation also expands sectoral carbon trading. Therefore, carbon trading is no longer centralized in the Ministry of Environment and Forestry. Thus, other ministries-such as the Ministry of Industry, the Ministry of Agriculture, and the Ministry of Energy and Mineral Resources-can also participate in carbon trading.
Meanwhile, Coordinating Minister for Food Zulkifli Hasan said that Presidential Regulation Number 110 of 2025 facilitates and clarifies provisions regarding the economic value of carbon. In addition, Perpres 110/2025 also appoints the Coordinating Minister for Food to coordinate the implementation of NEK instruments through the Director Committee. "Because this opens up the space (for cross-sectors); the Ministry of Forestry can, the Ministry of Environment can, the Ministry of Agriculture can, the regional government can, so it's facilitated," said Zulhas at the Ministry of Coordinating Human Development and Culture Affairs office, Jakarta, on Monday, October 20, 2025.
In the NEK regulations, the government acknowledges non-Certificate of Emission Reduction (SPE-GRK) carbon units or the voluntary market. So far, there are two types of markets in carbon trading. In addition to the voluntary carbon market, there is also a mandatory carbon market recorded as a Nationally Determined Contribution (NDC). The voluntary carbon market allows companies or individuals to buy carbon credits voluntarily without the aim of NDC.
Minister of Environment and Forestry Hanif Faisol said that when Indonesia launched the domestic carbon market with a compliance market scheme in September 2023, there was little interest. The same thing happened when the international carbon market opened on January 22, 2025.
According to Financial Services Authority (OJK) data, until September 2025, the total transaction volume in the Indonesian carbon exchange was only 1,606,056 CO2 equivalents with an accumulated value of Rp78.46 billion. "So, whether we like it or not, we have to collaborate through a mutual recognition agreement (MRA). We have done MRAs with five major voluntary markets, such as Gold Standard, Plan Vivo, Verra, GCC, and Pure Earth," said Hanif at the launch of the Book and Seminar Realizing High-Integrity Carbon Pricing in Indonesia, Jakarta, on Wednesday, October 15, 2025.
Irsyan Hasyim contributed to the writing of this article
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