Voluntary Carbon Marketing Proposed in Revision of Regulation of the President 98

The government is preparing the amendment to Regulation of the President No. 98 of 2021 (“Regulation 98/2021”) on the Organization of Carbon Economic Value (Nilai Ekonomi Karbon - “NEK”) for the Achievement of Nationally Determined Contribution Targets and Greenhouse Gas Emission Control in National Development.

“We are currently revising Regulation 98/2021, and we will revise it to include provisions for Voluntary Carbon Marketing within the regulation,” said Mahfudz, Secretary General of the Ministry of Forestry.

It is expected that those developing sustainable forest management within social forestry will have access to premium carbon credits. The estimated carbon price from social forestry is also considered higher.

“If the carbon absorption potential through Forest Utilization Business Licensing is only 5-8 dollars per ton, in social forestry, it can reach 25-30 dollars,” said Mahfudz.