The month of July 2026 brought major changes to Indonesia’s carbon credit market. On July 6, 2026, the Ministry of Forestry approved four forestry carbon projects with an estimated emissions-reduction potential of more than 30 million tonnes CO₂e, clearing the way for associated carbon credits to be issued under Indonesia’s new forestry carbon framework. Three days later, on July 9, 2026, the Ministry of Environment switched on the Carbon Unit Registry System, known as SRUK. Singapore and Indonesia have also advanced a bilateral Article 6 partnership under the Paris Agreement. This framework lets Indonesian carbon credits count toward another country’s climate targets.
For a foreign investor, a domestic developer, or a board weighing its next climate investment, this is a major structural shift. Indonesia replaced its original 2021 carbon framework with a rebuilt regime under Presidential Regulation 110 of 2025. It also stopped the same carbon credit from being sold to two different buyers because of SRUK’s introduction. It then signed its first cross border deal under Article 6. And it did all this while holding one of the largest tropical forest estates on earth.
This guide explains what has changed and why it matters. It also sets out what a serious investor needs to know before committing capital. The following four points are the most critical:
- Indonesia closed several legal gaps that made foreign participation risky before 2025.
- The country’s national carbon balance remains a live political question. This means how much Indonesia can sell abroad without compromising its own climate targets.
- Forestry and land use dominate today’s market. Energy sector rules are still taking shape.
- The Singapore deal is very likely a template, not a one off. More bilateral agreements should follow before COP31.
This is just the beginning of what Indonesia’s reformed carbon market means for investors, developers, and regional decision-makers. Our full guide goes deeper — covering the regulatory architecture under PR 110/2025, a sector-by-sector breakdown of where the rules stand today, practical checklists for both foreign investors and domestic developers, and a Partner’s Perspective from Afriyan Rachmad on what well-structured early entry actually looks like. Whether you are evaluating an acquisition, planning a project, or simply getting up to speed, the full article is worth your time.
