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Understanding Carbon Trading in Indonesia's Carbon Market



In a noteworthy continuation of regulatory measures following PR 98/2021 and MoEF Reg. 21/2022, the Indonesian Government has officially enacted OJK Reg. 14/2023 on carbon trading through carbon exchange which effective as of August 2, 2023. The issuance of OJK Reg. 14/2023 represents a landmark development in the eagerly awaited field of carbon trading within Indonesia.


Notably, the said regulation opens up opportunities for various business entities to function as carbon exchanges, provided they adhere to the stipulations elaborated in OJK Reg. 14/2023. Furthermore, this regulation paves the way for international carbon trading, subject to the prerequisites for foreign carbon units to undergo mutual recognition. Find out more our insights about this topic in our Legal Brief publication.


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