Client Alert – PR 110/2025: New Regulation Reinvents Indonesia’s Carbon Trading Regime to Drive Market Confidence and Investment Growth
By UMBRA
Thursday, October 16 2025 - 02:42 PM WIB
(October 16, 2025)--After several years of limited progress under Indonesia’s initial carbon pricing framework, the government of Indonesia has transformed its approach with the issuance of PR 110/2025. The new regulation represents a deliberate policy shift to accelerate market activity and align Indonesia’s carbon framework with international standards. PR 110/2025 introduces a number of substantive innovations, such as the potential conduct of direct international carbon trading immediately without waiting for NDC target achievement, recognition of voluntary carbon markets and internationally certified carbon units, and establishment of a dedicated national carbon registry system separated from SRN PPI with its own MRV procedures. These efforts collectively aim to make Indonesia’s carbon market more transparent, credible, and investment ready.