The Amendment introduces significant changes to Indonesia?s carbon trading framework by revising the registry system, expanding the categories of tradable carbon units and offering greater flexibility for the trading of internationally recognized carbon units. The Amendment has also expanded OJK oversight to include the governance of carbon exchange users? sustainability and provides a three-month transition period in order to support the implementation of the new registry framework.
This new Regulation has now overhauled the verification process for small and medium enterprises that are applying for priority mining business license areas through the introduction of fully integrated electronic assessments and the elimination of field verifications. Crucially, the Regulation mandates that companies should integrate local economic development programs into their annual work plans and execute targeted supply-chain partnerships both prior to and after the commencement of any mining production operations.
BEI has now replaced the registry system for carbon market activities with SRUK and has also expanded the categories of tradable carbon units. In addition, a formal retirement mechanism on behalf of other parties has also been introduced, while cost responsibilities have been clarified and BEI has been empowered to issue further operational procedures. These initiatives will require carbon market participants to review and update their registration, trading and retirement processes in order to ensure their continued regulatory compliance.
This Regulation formally establishes a comprehensive framework for the Carbon Unit Registry System (Sistem Registri Unit Karbon ? ?SRUK?) for carbon unit management, thereby supporting Indonesia?s NDC and preventing double counting. The new framework details procedures for the registration of greenhouse gas emissions offsetting, as well as carbon trading and international transfers, while introducing various transaction timelines, carbon unit status classifications, user responsibilities and administrative sanctions, which should hopefully strengthen compliance and safeguard the integrity of carbon unit transactions.
This new Decree accelerates the commercialization of non-conventional oil and gas within the Rokan Working Area through the introduction of distinct production sharing splits, targeted economic incentives and immediate cost recovery eligibility for potential studies. The new framework also officially revokes the previous general guidelines, thereby signaling a transition to a localized and economically tailored regulatory regime for contractors operating within this specified block.
This Regulation expands Indonesia?s Nationally Determined Contribution (?NDC?) framework by adding marine and fisheries, blue carbon management, and oil and gas to its scope of mitigation. Meanwhile, Carbon Allocation and Carbon Reserves should be considered during any NDC target-setting. The new framework also clarifies Greenhouse Gas (GHG) inventory requirements and institutional responsibilities as regards Measurement, Reporting and Verification (MRV). Finally, the new Regulation also aims to strengthen transparency through mandatory reporting, which should be completed via the SRN PPI and through SRUK interoperability.
This new framework updates the risk-based business licensing standards that apply across the energy sector. The new Regulation introduces specific licensing categories for carbon capture and storage (CCS) activities and biofuel blending, while also imposing explicit administrative sanctions for non-compliance. As a result, all companies operating within the energy sector must bring their operational licenses into line with the updated classifications in order to ensure their business continuity.
This Amendment introduces a formal approval framework for coal blending activities and now requires certain IUP, IUPK and PKP2B holders with approved RKAB to secure Ministerial approvals prior to engaging in any such activities. The Amendment also establishes various application and documentation-related requirements, brings approval validity into line with the RKAB period and expands quarterly reporting obligations to also include coal blending activities.
This new Decree has established a set of mandatory Minimum Energy Performance Standards (Standar Kinerja Energi Minimum/SKEM) and energy-saving labeling requirements for various categories of clean water pump products. Domestic producers and importers are now required to secure energy efficiency certification, affix standardized star-rating labels to product bodies and packaging, and comply with various quarterly reporting obligations
This Regulation establishes a framework for domestic procurements and imports of crude oil, oil fuel and/or liquefied petroleum gas (collectively referred to as ?Petroleum Products?) by State-Owned Enterprises (Badan Usaha Milik Negara ? ?BUMN?), Public Service Agencies (Badan Layanan Umum ? ?BLU?) and/or other business entities operating within the energy sector. Furthermore, in urgent circumstances, BUMN and BLU will be permitted to import said Petroleum Products, with BUMN in particular being allowed to engage in direct procurement arrangements and multi-year contracts