Indonesia Carbon Credit Guide 2026: New Rules for Foreign and Domestic Investors

Indonesia overhauled its carbon credit framework in July 2026, opening the door for foreign and domestic investors. The Ministry of Forestry approved four forestry carbon projects with over 30 million tonnes CO2e in estimated reductions. The Ministry of Environment launched the SRUK carbon registry to prevent double counting. A bilateral Article 6 deal with Singapore now allows Indonesian credits to count toward another country's climate targets. Presidential Regulation 110 of 2025 replaced the original 2021 framework, closing legal gaps that made foreign participation risky. Forestry and land use dominate the market today, while energy sector rules are still being developed. The Singapore deal is expected to be a template for more bilateral agreements before COP31. Investors should watch Indonesia's national carbon balance, which determines how many credits can be sold abroad without compromising domestic targets.