ESG and carbon regulation in Indonesia
A plain-language map of the rules that shape carbon and sustainability reporting for companies operating in Indonesia — and the international rules that reach them through their buyers.
This page is a general overview for orientation, not legal advice. Regulations change; always verify the current text with the issuing authority or your legal counsel before acting.
National framework
Perpres 98/2021 — Carbon Economic Value (NEK)
The presidential regulation that establishes Indonesia's carbon pricing framework, the national registry (SRN PPI), and the rules for carbon trading, results-based payments, and the carbon levy.
Any carbon project or trade in Indonesia has to fit this framework. Registration in SRN PPI is the entry point.
POJK 51/2017 — Sustainable Finance
Requires financial institutions, listed issuers, and public companies to apply sustainable finance principles and publish an annual Sustainability Report.
If you are listed or financed by an Indonesian bank, your ESG data is already being asked for — the quality of that data is the differentiator.
POJK 14/2023 — Carbon Exchange
Governs carbon trading through a licensed exchange operator. IDXCarbon began operating as Indonesia's carbon exchange in 2023.
Domestic carbon units can be traded on a regulated venue, which changes how credits are structured and who can buy them.
MoEF regulations on NEK implementation
Ministry of Environment and Forestry rules set out measurement, reporting, and verification (MRV) procedures, the SPE-GRK certification path, and sectoral emission baselines.
MRV quality decides whether your reductions become certified units — this is where most projects succeed or stall.
Indonesia's NDC and net-zero commitment
Indonesia's Nationally Determined Contribution sets sectoral emission reduction targets, with FOLU Net Sink 2030 for forestry and land use, and a net-zero target of 2060 or sooner.
Sectoral targets flow down into regulation and procurement expectations over time. Early movers face less disruption later.
International rules that reach Indonesian companies
IFRS S1 & S2 (ISSB)
The global baseline for sustainability and climate-related financial disclosure, increasingly referenced by regulators and investors across Asia.
Investors and lenders will benchmark your disclosure against this baseline even before it is locally mandated.
EU CBAM
The EU Carbon Border Adjustment Mechanism prices the embedded carbon of imported goods in sectors such as iron and steel, aluminium, cement, and fertilizers.
Exporters to the EU need verifiable product-level emissions data, or they pay on default values.
EU CSRD & value-chain reporting
European buyers subject to CSRD must report on their value chains, which pushes data requests down to suppliers outside Europe.
Expect emissions questionnaires from your European customers — answering them well protects the contract.
Not sure which of these applies to you?
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