Implementation of Perpres on NEK: Government Prepares Two Implementing Regulations for Each Sector

The Government is currently preparing a number of implementing regulations for Regulation of the President No. 110 of 2025 on the Implementation of Carbon Economic Value (Nilai Ekonomi Karbon – “NEK”) Instruments and National Greenhouse Gas (Gas Rumah Kaca – “GRK”) Emissions Control. Ary Sudjianto, Deputy for Climate Change Control and Carbon Economic Value Governance at the Ministry of Environment (Kementerian Lingkungan Hidup - “KLH”), revealed that new Ministerial Regulations and Ministerial Decrees are being prepared for each relevant sector, with completion targeted for early July.

“Our plan is to launch all of them in early July. We are currently working intensively to ensure that, at a minimum, each sector will have two regulations in place, namely a Ministerial Regulation and a Ministerial Decree,” Ary told Hukumonline.

Ary explained that the KLH is currently formulating at least eight regulations aimed at strengthening the implementation of carbon trading in Indonesia. The scope of these regulations includes: Procedures for carbon trading, The carbon trading roadmap, The roadmap for achieving Nationally Determined Contribution (“NDC”), specifically for the waste sector; regulations concerning the provision of environmental documents, and regulations governing carbon registry administration.

To maintain a balance between the carbon market and the State's commitments, the KLH will implement a safeguard mechanism. Under this framework, all carbon trading activities will be required to obtain approval from the relevant sectoral authority to ensure that such activities remain aligned with Indonesia's NDC targets.