Commission IV Ensures Regulation of Carbon Trading in the Draft Forestry Bill

Commission IV of Indonesia’s House of Representatives (“DPR RI”) is currently deliberating the Draft Bill on Forestry (“Draft Forestry Bill”).

The Deputy Chair of Commission IV of the DPR RI, Abdul Kharis Almasyhari, stated that the current focus of deliberations is the harmonisation of the draft bill and its academic paper with the Legislative Body (“Baleg”), and it is expected to soon be established as a DPR RI-initiated draft bill.

“After that harmonisation, only then will this draft be declared—if later in the plenary session it is agreed and approved—as a DPR RI initiative proposal,” Kharis said to Hukumonline.

He further explained that several regulatory innovations are proposed in this Draft Bill, one of which concerns the legal framework for carbon trading in the forestry sector. According to him, although the Draft Bill will serve as the legal foundation, technical provisions such as carbon accounting methodologies are typically not regulated in detail within the main body of the Draft Bill, but rather will be governed through a Regulation of the President (“Perpres”) on carbon trading that has already been issued.

“Essentially, the core point is that carbon trading is regulated in the Draft Bill—it serves as the legal umbrella,” he added.