Indonesia Issues New Forestry Carbon Market Regulation

Indonesia has issued new regulations governing its forestry carbon market, with the Ministry of Forestry publishing Regulation No. 6/2026 to streamline carbon trading processes and open access for international investors.

Drone view of Indonesia’s expansive tropical forests, which help absorb carbon emissions and support the country’s carbon market ambitions. AI generated picture.

The regulation is designed to improve business conditions for carbon trading in Indonesia’s forestry sector and meet international demand for higher-quality carbon credits. A central feature is the adoption of a nesting system to prevent double-counting. The approach coordinates accounting between individual projects and national carbon frameworks, ensuring that verified emissions reductions are counted only once across all reporting systems.

Senior forestry ministry adviser Edo Mahendra described the regulation as marking ‘a new chapter in the carbon market era’ for Indonesia. He said the country aims to take an active leadership role in international carbon markets and will continue building its credibility through alignment with global standards.

Indonesia’s tropical forests represent one of the world’s largest concentrations of forested land, making the country a significant contributor to global carbon absorption. Officials have promoted forestry-based carbon trading as a means to attract investment and unlock the commercial value of the country’s natural forest assets.

The new regulation comes as governments and investors place growing weight on transparency and environmental credibility in global carbon markets. For Indonesia, the updated framework signals the country’s intent to meet these standards and expand its share of international demand for verified, high-integrity carbon credits.