Regulation on Environmental Services for Carbon Governance Being Drafted

The Ministry of Forestry (“ Kemenhut ”) is currently preparing a new regulation, namely the Draft Regulation of the Minister of Forestry on the Utilization of Environmental Services in Conservation Areas (“ Draft Regulation ”). This regulation is intended to strengthen carbon market governance in Indonesia.

“This Draft Regulation focuses on norms, standards, procedures, and criteria (“ NSPC ”) for the utilization of environmental services, including carbon-related environmental services within nature conservation areas,” said Nandang Prihadi, the Director of Environmental Services Utilization, to Hukumonline.

The regulation will govern business licensing or permit holders for the utilization of environmental services, allowing them to carry out activities or mitigation actions for carbon trading purposes. This Draft Regulation serves as an implementing regulation of Presidential Regulation No. 110 of 2025 (“ Perpres 110/2025 ”) on the Implementation of Carbon Economic Value (Nilai Ekonomi Karbon– “ NEK ”) Instruments and Greenhouse Gas (“ GHG ”) Emissions Control.

“It also regulates the requirements for obtaining a business license through the Online Single Submission (“ OSS ”) system,” Nandang added.