Climate Change Management Draft Bill Strengthens Carbon Trading

Deputy Chairman of the People's Consultative Assembly of the Republic of Indonesia (MPR RI) Eddy Soeparno said that the preparation of Draft Bill on Climate Change Management (“PPI”) is necessary to strengthen the legal basis for carbon trading activities.

“Currently, the draft bill has been included in the 2026 national priority legislation program. We need the PPI Law to regulate carbon trading activities," said Eddy.

According to him, climate change regulation cannot rely solely on the general Environmental Law. Special regulations are needed that are able to describe technical mechanisms such as emission measurement, carbon market governance, and carbon economic benefit distribution schemes in more detail and operationally.

The existence of existing regulations such as Regulation of the President No. 110 of 2025 (“Regulation 110/2025”) on the Implementation of Carbon Economic Value Instruments and National Greenhouse Gas Emission Control (“GHG”) is still considered to require a stronger legal basis so that climate policy implementation can be effective and have a broad impact on regions and business actors.