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Peraturan Presiden 98/2021Regulation
Full titlePeraturan Presiden Nomor 98 Tahun 2021 tentang Penyelenggaraan Nilai Ekonomi Karbon untuk Pencapaian Target Kontribusi yang Ditetapkan Secara Nasional dan Pengendalian Emisi Gas Rumah Kaca dalam Pembangunan Nasional
CitationPerpres 98/2021
JurisdictionIndonesia
Enacted byPresident of Indonesia
Signed29 October 2021
Promulgated29 October 2021
Effective29 October 2021
ReplacesPerpres 61/2011 and Perpres 71/2011
Replaced byPerpres 110/2025

Peraturan Presiden 98/2021 (Peraturan Presiden Nomor 98 Tahun 2021 tentang Penyelenggaraan Nilai Ekonomi Karbon untuk Pencapaian Target Kontribusi yang Ditetapkan Secara Nasional dan Pengendalian Emisi Gas Rumah Kaca dalam Pembangunan Nasional) was an Indonesian presidential regulation that provided the basis for the carbon economic value (Nilai Ekonomi Karbon, NEK) as an instrument for meeting Indonesia's Nationally Determined Contribution (NDC) under the Paris Agreement, and set the national framework for greenhouse gas mitigation, climate adaptation, carbon trading, results-based payment and carbon levies. It was signed and promulgated on 29 October 2021 and revoked by Peraturan Presiden 110/2025 on 10 October 2025.[1][2] It is one of the instruments described at carbon trading and climate regulation in Indonesia.

The regulation stated the NDC target as a reduction of 29 per cent by Indonesia's own effort, and up to 41 per cent with international cooperation, against a 2030 baseline of 2,869 million tonnes of carbon dioxide equivalent, supported mainly by a net carbon sink in forestry and other land use by 2030.[3] It organised mitigation by sector and sub-sector, adaptation by field, and the NEK through carbon trading, results-based payment, carbon levies and other mechanisms, under a transparency framework of measurement, reporting and verification, a national registry and emission reduction certificates.[4][5][6]

Permen LHK 21/2022 on NEK procedures lists it among its legal bases. According to the official database of regulations, it revoked the 2011 presidential regulations on the national action plan for greenhouse gas reduction and on the national greenhouse gas inventory.[1:1][7] CRPG's regulatory tracker published an analysis of it in November 2025.[8]

Background

The preamble links the regulation to the right to a good and healthy environment, to Indonesia's ratification of the Paris Agreement by Undang-Undang 16/2016, and to the view that carbon, as the universal indicator of climate performance, has economic value; it describes the NEK as one instrument for meeting the government's emission-reduction commitment through the most efficient, effective and equitable choice of mitigation and adaptation actions. Its legal bases include Undang-Undang 32/2009 on environmental protection and management.[9] Pasal 1 defines the NEK as the value of each unit of greenhouse gas emissions produced by human and economic activity.[10] The minister under the regulation is the minister for environmental protection and management.[10:1]

NDC target and baseline

Pasal 2 describes the regulation as the basis for the NEK and a guide to reducing emissions to meet the NDC target, which it set as a reduction of 29 to 41 per cent by 2030 compared with the baseline, together with building national, regional and community climate resilience. Efforts towards the target were to lead to low-emission, climate-resilient development by 2050, and the target was to be reviewed at least once every five years.[3:1] Pasal 3 quantified the 2030 baseline at 2,869 million tonnes of carbon dioxide equivalent, the 29 per cent reduction by the government's own effort at 834 million tonnes, and the reduction of up to 41 per cent with international cooperation at up to 1,185 million tonnes, both supported mainly by emission control in forestry to reach a net sink in forestry and other land use by 2030.[3:2]

Mitigation and adaptation

Mitigation was organised in five named sectors (energy; waste; industrial processes and product use; agriculture; forestry) and thirteen sub-sectors, with blue carbon in the marine sector assigned to the fisheries ministry. Planning proceeded through a greenhouse gas inventory, a baseline, a target and an action plan, with inventory results reported each year from business actors to local governments and ministries, and from governors and sector ministers to the environment minister by June.[4:1][11] Baselines and targets were set at national, sector and provincial level, and emission reductions were measured by comparing the baseline with the current year's inventory, either through mitigation actions or through emission caps (Batas Atas Emisi GRK).[12] Adaptation was organised in the fields of food, water, energy, health and ecosystems, through inventories of climate impacts, a climate-resilience baseline and targets, and adaptation plans.[13]

Carbon economic value

Chapter IV allowed mitigation and adaptation actions to be carried out through the NEK in the sectors and sub-sectors, by ministries and agencies, regional governments, business actors and the public, and named four mechanisms: carbon trading, results-based payment, carbon levies and others set by the minister.[5:1] Carbon trading could be domestic or foreign, through emissions trading for activities with a cap set by technical approval or through offsets for activities without one, on a carbon exchange or by direct trade; foreign trade could not reduce achievement of the 2030 NDC target, and the carbon exchange was to be located in Indonesia.[14] Revenue from carbon trading was classed as non-tax state revenue from levies on transactions in carbon units.[14:1]

Results-based payment rewarded verified reductions or carbon conservation at international, national and provincial levels without transferring ownership of the carbon, and its mitigation results counted towards the NDC.[15] Carbon levies were to take the form of taxes, customs and excise and other state levies based on carbon content, emission potential, emissions or mitigation performance, with policy formulated by the finance minister; funds from the three mechanisms could be managed by the environmental fund agency or another designated body.[16]

Transparency framework

Chapter V required mitigation, adaptation and the NEK to be carried out through measurement, reporting and verification, the national climate change registry (Sistem Registri Nasional Pengendalian Perubahan Iklim, SRN PPI) and certification of emission reductions.[6:1] Every business actor was obliged to record and report its mitigation and adaptation actions, NEK activities and climate resources on the SRN PPI; failure could lead to administrative sanctions ranging from a written warning to the freezing or revocation of an emission reduction certificate, and to refusal of certificates and authorisations.[17][18]

Emission reduction certificates (Sertifikat Pengurangan Emisi GRK) were issued after registration on the SRN PPI and independent verification, and served as proof of performance and as the basis for trading, payment, compensation, carbon labels and green financing. Other certification schemes had to conform to ISO 14064 and ISO 14065 and be run by bodies accredited by the national accreditation committee, subject to the minister's recognition.[19] The regulation also provided for a climate action label within the eco-label system and for mutual recognition in foreign trading, and required monitoring and evaluation of progress towards the 2030 NDC target at every level of government and by business actors.[20] Its scope, as set out in Pasal 4, also covered guidance, funding and a steering committee.[21]

Revocation

Perpres 110/2025, signed and promulgated on 10 October 2025, stated in its preamble that the 2021 regulation no longer met legal and social needs and had to be replaced. Its Pasal 101 revoked Perpres 98/2021, and its Pasal 100 kept the implementing regulations of Perpres 98/2021, and of the two 2011 regulations, in force so far as they did not conflict with the new regulation and had not been replaced.[2:1]

See also

Part of a series on Carbon trading and climate regulation in Indonesia
Climate change bill of Indonesia · KONEKSI · Permen ESDM 7/2026 · Permenhut 28/2025 · Permenhut 37/2010 · Permenhut 6/2026 · Permenhut 7/2026 · Permen LHK 10/2022 · Permen LHK 14/2017 · Permen LHK 15/2019 · Permen LHK 16/2020 · Permen LHK 21/2022 · Permen LHK 27/2021 · Permen LHK 70/2017 · POJK 10/2026 · POJK 9/2026 · PP 26/2025 · PP 33/2023 · Perpres 110/2025 · Perpres 55/2019 · Perpres 98/2021 · PESPA · UU 32/2009 · UU 41/1999 · UU 59/2024
Identifiers Know ID K193 · Work URI /akn/id/act/perpres/2021/98 · RegVault PERPRES_98_2021
Categories Presidential regulations of Indonesia · Climate change policy of Indonesia
What links here (8)

References

  1. [P] Perpres No. 98 Tahun 2021, JDIH BPK: enacted, promulgated and in force 29 October 2021, Lembaran Negara 2021 No. 249; status not in force; revoked by Perpres No. 110 Tahun 2025; revokes Perpres No. 61 Tahun 2011 and Perpres No. 71 Tahun 2011. https://peraturan.bpk.go.id/Details/187122/perpres-no-98-tahun-2021 ↩︎ ↩︎

  2. [P] Peraturan Presiden Nomor 110 Tahun 2025 tentang Penyelenggaraan Instrumen Nilai Ekonomi Karbon dan Pengendalian Emisi Gas Rumah Kaca Nasional, Menimbang huruf c, Pasal 100, Pasal 101 and closing formula (signed and promulgated 10 October 2025). Lembaran Negara 2025 No. 172. regulation_id PERPRES_110_2025. ↩︎ ↩︎

  3. [P] Perpres 98/2021, Pasal 2 ayat (1) to (8) and Pasal 3 ayat (1) to (4). regulation_id PERPRES_98_2021. ↩︎ ↩︎ ↩︎

  4. [P] Perpres 98/2021, Pasal 5 to Pasal 8. regulation_id PERPRES_98_2021. ↩︎ ↩︎

  5. [P] Perpres 98/2021, Pasal 45 to Pasal 47. regulation_id PERPRES_98_2021. ↩︎ ↩︎

  6. [P] Perpres 98/2021, Pasal 60. regulation_id PERPRES_98_2021. ↩︎ ↩︎

  7. [P] Permen LHK No. 21 Tahun 2022 tentang Tata Laksana Penerapan Nilai Ekonomi Karbon, JDIH BPK, listing Perpres No. 98 Tahun 2021 among its legal bases. https://peraturan.bpk.go.id/Details/235421/per ↩︎

  8. [E] "What Carbon Pricing Framework Exists Under PERPRES 98/2021?", CRPG regulatory tracker, crpg.id, 26 November 2025. https://crpg.id/what-carbon-pricing-framework-exists-under-perpres-98-2021/ (free sign-in required on crpg.id) The post carries a notice that it is AI-generated; it is cited for the record of the development, not for its legal content. ↩︎

  9. [P] Perpres 98/2021, preamble, Menimbang huruf a to d and Mengingat. regulation_id PERPRES_98_2021. ↩︎

  10. [P] Perpres 98/2021, Pasal 1 (definitions of Nilai Ekonomi Karbon and Menteri). regulation_id PERPRES_98_2021. ↩︎ ↩︎

  11. [P] Perpres 98/2021, Pasal 9, Pasal 10 and Pasal 12. regulation_id PERPRES_98_2021. ↩︎

  12. [P] Perpres 98/2021, Pasal 13, Pasal 14, Pasal 20 and Pasal 25. regulation_id PERPRES_98_2021. ↩︎

  13. [P] Perpres 98/2021, Pasal 31 to Pasal 35. regulation_id PERPRES_98_2021. ↩︎

  14. [P] Perpres 98/2021, Pasal 48 to Pasal 54, including Pasal 49 ayat (1) and Pasal 54 ayat (4) and (7). regulation_id PERPRES_98_2021. ↩︎ ↩︎

  15. [P] Perpres 98/2021, Pasal 55 to Pasal 57. regulation_id PERPRES_98_2021. ↩︎

  16. [P] Perpres 98/2021, Pasal 58 and Pasal 59. regulation_id PERPRES_98_2021. ↩︎

  17. [P] Perpres 98/2021, Pasal 69 and Pasal 70. regulation_id PERPRES_98_2021. ↩︎

  18. [P] Perpres 98/2021, Pasal 75 and Pasal 76. regulation_id PERPRES_98_2021. ↩︎

  19. [P] Perpres 98/2021, Pasal 71 to Pasal 73. regulation_id PERPRES_98_2021. ↩︎

  20. [P] Perpres 98/2021, Pasal 74, Pasal 77 and Pasal 78. regulation_id PERPRES_98_2021. The held copy ends in Pasal 80 and does not carry the closing chapters or the closing formula. ↩︎

  21. [P] Perpres 98/2021, Pasal 4. regulation_id PERPRES_98_2021. ↩︎