Indonesia issued Minister of Agriculture Regulation No. 18 of 2026 to govern carbon credit projects in rice farming, livestock, and plantations. The rule requires businesses to work with at least three farmer groups near a project site, sign written agreements on benefit sharing, and obtain free, prior and informed consent from farmers. Projects must also document emissions reductions, go through independent verification, and register credits in the national SRUK registry. The regulation does not set a fixed revenue share for farmers. Instead, the split depends on technology costs, land size, emissions reduced, and credits generated. Farmer groups can also run projects themselves or partner with outside funders. The rules are part of Indonesia's broader carbon market buildout, which has seen over 1.6 million tonnes traded on the national exchange as of July 2025. International transfers under Article 6 remain separate and need additional approval.
