Revision of Regulation of the President on NEK Will Align Cross-Sectoral Regulation

The Director of Carbon Economic Value Governance at the Ministry of Environment, Ignatius Wahyu Marjaka, confirmed that the amendment process for Regulation of the President No. 98 of 2021 on the Implementation of Carbon Economic Value (Nilai Ekonomi Karbon– “ NEK ”) to Achieve the Nationally Determined Contribution (“ NDC ”) Targets and the Control of Greenhouse Gas (“ GHG ”) Emissions in National Development (“ Perpres 98/2021 ”) is now only awaiting the signature of President Prabowo.

“The Inter-Ministerial Committee (Panitia-antar-Kementerian/PAK) team has already established a commitment, and the process has been submitted to the State Secretariat. It’s now just awaiting the President’s signature,” said Wahyu to Hukumonline.

The government will later identify the implementation process of the revision, focusing on the adoption of international standards and the voluntary carbon market. Wahyu stated that this identification will determine which regulations need to be adjusted in line with the new provisions.

Wahyu also confirmed that the new regulation will affect not only the implementing Regulation of the Minister of Environment but also several other cross-sectoral regulations that may need to be adjusted. This revision will support the implementation of carbon trading through multiple financing schemes.

“This will be left to each sector to determine the extent to which they will carry out revisions or improvements, if deemed necessary,” he explained.