Revised Regulation of the Minister on Forestry Regulates Carbon Trading

The Ministry of Forestry (“Ministry”) has revised Regulation of the Minister of Environment and Forestry No. 9 of 2021 (“Regulation 9/2021”) on the Management of Social Forestry (“Perhutsos”). This revision is part of the implementation of policies derived from Regulation of the President No. 110 of 2025 (“Regulation 110/2025”) on the Organization of the National Carbon Economic Value (“NEK”) Instrument and the Control of Greenhouse Gas (“GRK”) Emissions.

“The Ministry promotes sustainable forest management, including the development of carbon projects that provide both ecological and economic benefits to the community,” said Minister of Forestry Raja Juli Antoni.

One of the key changes in this regulation concerns carbon business cooperation. Such cooperation is conducted between communities that already hold permits and are members of Social Forestry Business Groups (“KUPS”), and corporate entities. In this regulation, the economic value of carbon is also affirmed as one of the uses of environmental services.