Overview

In 2025, the Indonesian President issued Regulation No. 110 of 2025 on the Implementation of Carbon Economic Value (Nilai Ekonomi Karbon – “NEK”) Instruments and National Greenhouse Gas (“GHG”) Emissions Controls (“Regulation 110/2025”),[1] which specifically address the allocation of permitted carbon dioxide equivalent (CO₂e) emissions for specified periods based on national capacity,[2] as a part of the country’s NEK instruments and overall national GHG emissions control framework. In addition, Regulation 110/2025 also introduces various accounting adjustments for carbon that is generated through emissions reduction and/or removal activities, as measured in tonnes of carbon dioxide equivalent (“Carbon Units”).[3] These adjustments are aimed at achieving Indonesia’s Nationally Determined Contribution (“NDC”) and to prevent any double counting following transfers of Carbon Units to foreign countries.[4]