To further optimize Indonesia’s potential in carbon trading, delegates from the Ministry of Forestry participating in the COP30 UNFCCC meetings (Delegation of the Republic of Indonesia / DELRI Kemenhut) held a discussion with VERRA, a non-profit organization that develops and manages global standards for environmental, climate change, and sustainable development projects.
The meeting was a follow-up to the earlier engagement held in Jakarta on May 9, 2025. The Indonesian delegation included Director General of Sustainable Forest Management (PHL) Laksmi Wijayanti, Senior Advisor to the Minister of Forestry (PUM) Edo Mahendra and Silverius Oscar, and Head of Public Relations and International Cooperation Bureau Krisdianto.
Representing VERRA were Chief Executive Officer Mandy Rambharos, Director of Market and Client Relations Cassio Souza, and Director of Forest and Blue Carbon, Program Development and Innovation Katie Goslee.
In his opening remarks, Edo Mahendra expressed appreciation to VERRA for the opportunity to meet and share updates on Indonesia’s progress in accelerating the implementation of the Voluntary Carbon Market (VCM). VERRA CEO Mandy Rambharos highlighted Indonesia’s crucial role as a key potential partner in advancing voluntary carbon trading at the global level.
Director General Laksmi Wijayanti informed that Presidential Regulation (Perpres) No. 110 of 2025 has been issued, replacing Presidential Regulation No. 98 of 2021. The new regulation governs the implementation of the Carbon Economic Value Instrument (NEK) and national Greenhouse Gas Emission Control, positioning it as a strategic framework to facilitate high-value carbon credits.
Currently, the Ministry of Forestry is drafting four derivative regulations, including revisions to:
- Minister of Environment and Forestry Regulation (Permen LHK) No. 7/2023,
- Permen LHK No. 8/2021,
- Permen LHK No. 9/2021, and
- a new draft regulation on the utilization of ecosystem services within conservation areas.
“Unlike Presidential Regulation No. 98/2021, which did not accommodate the Voluntary Carbon Market, Presidential Regulation No. 110/2025 provides clearer opportunities by positioning carbon as a primary commodity, rather than a residual element of Nationally Determined Contribution (NDC) achievement,” explained Edo Mahendra.
He further noted that the institutional framework for carbon trading will be strengthened through the establishment of a Steering Committee, involving several technical ministries. T
he Committee will be chaired by the Coordinating Minister for Food Affairs, with the Coordinating Minister for Economic Affairs and Coordinating Minister for Infrastructure serving as vice chairs.
The Steering Committee is expected to help overcome cross-sectoral challenges and accelerate the establishment of a robust national carbon trading system.
“We aim to develop a carbon trading mechanism that is well-structured, sustainable, and institutionally sound—so that investors have confidence and are encouraged to participate,” said Edo Mahendra.
Both parties agreed to hold regular meetings to monitor progress, particularly regarding the dynamic development of carbon accounting and verification methodologies. Director General Laksmi Wijayanti emphasized that all efforts must be directed toward building a high-integrity carbon trading system that fully complies with national and international regulations.
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