Serves as the Technical Guideline for NEK, Kementan Targets Completion of Carbon Regulations by October

The Ministry of Agriculture (“Kementan”) is currently finalizing the Draft Regulation of the Minister (“Permen”) on implementing Regulation of the President No. 110 of 2025 on the Implementation of Carbon Economic Value Instruments and National Greenhouse Gas Emission Control (“Perpres 110/2025”). The regulation is expected to be completed by October 2026 and will serve as the technical guideline for the implementation of Carbon Economic Value (Nilai Ekonomi Karbon - “NEK”) in the agricultural sector.

“Perpres 110/2025 will be further implemented through Permentan. At present, the regulation is still under preparation, and hopefully we will have the relevant guidelines by October,” stated Ali Pramono, Junior Expert Analyst for Standardization at the Ministry of Agriculture’s Agricultural Assembly and Testing Center.

The new permen will establish specific mechanisms for priority subsectors, such as rice cultivation, livestock, and plantations, to enable them to take advantage of carbon trading opportunities and various economic incentives. The Permentan will govern the implementation framework for NEK, including carbon trading governance, emission offset mechanisms, and incentive mechanisms in the form of result-based payments. These incentives are expected to ensure that the NEK scheme does not impose excessive administrative burdens on smallholder farmers, but instead provides direct economic benefits.

Alongside the preparation of RPermen, Kementan is also developing several strategic planning documents to support the achievement of low-carbon emission targets. These include the Net Zero Emissions Roadmap for the Agricultural Sector, the Roadmaps for the Intended Nationally Determined Contribution (“INDC”) and the Second Nationally Determined Contribution (“SNDC”), and NEK Roadmap for the Agricultural Sector.