This article was machine-drafted from the sources cited in its footnotes. It is not the official text of any law or court decision, and it is not legal advice (how articles are written).
Peraturan Menteri Lingkungan Hidup dan Kehutanan 21/2022Regulation
Full titlePeraturan Menteri Lingkungan Hidup dan Kehutanan Nomor 21 Tahun 2022 tentang Tata Laksana Penerapan Nilai Ekonomi Karbon
CitationPermen LHK 21/2022
JurisdictionIndonesia
Enacted byMinister of Environment and Forestry
Signed21 September 2022
Promulgated20 October 2022
Effective20 October 2022
ImplementsPerpres 98/2021

Peraturan Menteri Lingkungan Hidup dan Kehutanan 21/2022 (Peraturan Menteri Lingkungan Hidup dan Kehutanan Nomor 21 Tahun 2022 tentang Tata Laksana Penerapan Nilai Ekonomi Karbon) is an Indonesian ministerial regulation that sets the procedures for applying the carbon economic value (Nilai Ekonomi Karbon, NEK) through carbon trading, results-based payment and carbon levies. It was signed by the Minister of Environment and Forestry on 21 September 2022 and took effect on its promulgation on 20 October 2022.[1][2] The official records list Peraturan Presiden 98/2021, the presidential regulation that provided the basis for the NEK, among its legal bases, and it forms part of the body of rules described at carbon trading and climate regulation in Indonesia.[2:1][3]

The regulation divides carbon trading into emissions trading, based on technical approvals of emission caps issued by sector ministers, and emission offsets, based on emission reduction certificates (SPE-GRK) issued by the ministry after validation, verification and review. It requires a buffer of certificates to be set aside before 2030, governs trade abroad through the minister's approval and authorisation, and places the proceeds under the environmental fund agency.[4][5]

It also sets rules for results-based payment and carbon levies, for the validators and verifiers who check mitigation claims, and for the national climate change registry (SRN PPI), on which business actors must record their NEK activities.[6][7][8] When Perpres 110/2025 replaced Perpres 98/2021 in October 2025, it kept the implementing regulations of the 2021 instrument in force so far as they did not conflict with it and had not been replaced.[9] CRPG's regulatory tracker published an analysis of the regulation in November 2025.[10]

Scope

Pasal 2 permits climate change mitigation actions to be carried out through the NEK in six sectors (energy; waste; industrial processes and product use; agriculture; forestry; and other sectors as science and technology develop) and thirteen sub-sectors, from power generation and transport to peat and mangrove management. Pasal 3 lists the parties that may implement it, namely ministries and agencies, regional governments, business actors and the public, and the mechanisms: carbon trading, results-based payment (Pembayaran Berbasis Kinerja), carbon levies (Pungutan atas Karbon) and other mechanisms.[11] The minister in the regulation is the minister for environmental protection and management; a "related minister" (Menteri Terkait) is the minister coordinating a sector or responsible for a sub-sector.[12]

Carbon trading

Carbon trading may be domestic or foreign and takes place through emissions trading (Perdagangan Emisi) or emission offsets (Offset Emisi GRK), on a carbon exchange or by direct trade. It must follow a carbon trading roadmap set by the related minister, must provide a buffer of emission reductions, and must use SPE-GRK where the trade crosses sectors. Foreign trade further requires that the related minister has set the sector's NDC strategy, that the sub-sector has met its NDC target, and that the minister has authorised the trade.[4:1]

Pasal 7 defines the buffer as a set-aside of carbon units to control the risk to the NDC target of trades made before 2030, and sets it at 0 to 5 per cent of SPE-GRK for domestic offsets, 10 to 20 per cent for foreign offsets, and at least 20 per cent for foreign offsets outside the scope of the NDC. The buffer may be returned once the sector targets have been met for two consecutive years.[4:2]

Emissions trading

Emissions trading applies to businesses and activities whose emission cap (Batas Atas Emisi GRK) has been set through a technical approval (PTBAE) issued by the related minister for a sub-sector. The related minister then allocates caps or quotas to individual business actors (PTBAE-PU), either on application or directly, without exceeding the sub-sector cap. Allocations may be traded at the start of a compliance period. At its end the business actor measures its actual emissions, has its report verified, and either offsets any excess by buying carbon units or trades or banks the unused part for up to two years; a business below its cap may also apply for SPE-GRK.[13]

Offsets and certificates

Offsets apply to businesses without a cap, and to those whose results fall below or above the target set against a baseline, which may sell a surplus or buy to cover a deficit. The business prepares a mitigation action design document (DRAM), has it validated, records it and its implementation reports on the SRN PPI, and has the reports verified; a measurement, reporting and verification (MRV) team formed by the Director General then reviews the file, and the Director General issues the SPE-GRK.[14]

Foreign trade

The related minister may enter foreign carbon trading cooperation, transferring part of the resulting reductions to a partner country with the minister's approval and authorisation, recording the transfer in the SRN PPI and applying a corresponding adjustment at the first transfer in the international registry under the United Nations Framework Convention on Climate Change. Business actors may cooperate with foreign counterparts on the same basis. The minister forms a designated national authority, located in the environment ministry as national focal point, to review proposals and recommend approvals and authorisations; applications for approval or authorisation are reviewed within fourteen working days.[15] Pasal 23 allows cross-sector trading within a quota set by the related minister, and Pasal 27 describes carbon exchanges as securities exchanges or trading operators licensed by the financial services authority.[16]

Results-based payment and carbon levies

Results-based payment rewards verified emission reductions, or verified carbon conservation or enhancement, achieved by ministries, regional governments or business actors, at international, national and provincial levels, without transferring ownership of the carbon. The minister issues general guidelines, payments are channelled through the environmental fund agency (Badan Pengelola Dana Lingkungan Hidup, BPDLH), and benefit sharing rests on verified performance recorded in the SRN PPI.[6:1] Carbon levies take the form of central and regional taxes, customs and excise and other state levies based on carbon content, emission potential, emissions or mitigation performance; the finance minister formulates the policy after coordinating with the environment minister and the related ministers.[6:2]

Measurement, reporting and verification

Pasal 38 to Pasal 41 require every NEK implementer to prepare a planning document, which is validated, and a report of results, which is verified. Validators and verifiers must be accredited by the national accreditation committee (Komite Akreditasi Nasional), have no conflict of interest, and hold at least two of four listed qualifications, among them national competency certification and two years' experience; where there are too few, experts registered in the SRN PPI may act. Verification must be completed within six months of the report's submission.[7:1]

Registry

Business actors must record and report their NEK activities on the SRN PPI, the web-based national registry for climate change control; ministries, regional governments and the public may do so. Separate recording duties apply to emissions trading, offsets, results-based payment and carbon levies, and the minister prepares annual reports on emissions trading and offsets. Issued and used certificates and allocations are held in operational accounts and moved to a cancellation account once used. The registry publishes public information on the NEK, including trading opportunities, carbon prices and a roster of experts.[8:1][17]

Certification

Emission reduction certificates are used as proof of mitigation performance and for trading, payment, compensation and green bond and sukuk financing. They cover seven gases, carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulphur hexafluoride and others, and each represents one tonne of carbon dioxide equivalent.[18] Reductions must be real, permanent, measurable and not registered under another scheme; offset certificates further require a DRAM, a location in Indonesia, registration on the SRN PPI, a methodology set by the Director General, the national standards body or the UNFCCC, and public consultation.[19] The Director General issues a certificate within fourteen working days after a favourable review, subject to a non-tax service tariff, with a unique registry code.[20] Certificates from other schemes may be recognised as equivalent through mutual recognition cooperation.[21]

Funds, participation and monitoring

Levies on SPE-GRK and PTBAE-PU transactions and on certificate issuance are paid into accounts designated by the BPDLH, used first for emission control towards the NDC, and spent on services, adaptation and mitigation.[5:1] The regulation also provides for public participation, and for monitoring and evaluation by the minister, the related ministers and regional heads, reported to the President at least once a year through the coordinating minister for maritime affairs and investment as chair of the steering committee.[22] It comprises 85 articles and three annexes on the formats of approvals and authorisations, the DRAM and validation and verification.[23][24][25]

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 K187 · Work URI /akn/id/act/permen-lhk/2022/21 · RegVault PERMEN_LHK_21_2022
Categories Ministerial regulations of Indonesia · Climate change policy of Indonesia
What links here (8)

References

  1. [P] Permen LHK 21/2022, Pasal 85 and closing formula (Ditetapkan di Jakarta pada tanggal 21 September 2022; Diundangkan di Jakarta pada tanggal 20 Oktober 2022). regulation_id PERMEN_LHK_21_2022. ↩︎

  2. [P] Peraturan Menteri Lingkungan Hidup dan Kehutanan Nomor 21 Tahun 2022, JDIH BPK: enacted 21 September 2022, promulgated and in force 20 October 2022, Berita Negara 2022 No. 1064; legal bases listed include Perpres No. 98 Tahun 2021. https://peraturan.bpk.go.id/Details/235421/per ↩︎ ↩︎

  3. [P] Permen LHK No. 21 Tahun 2022, peraturan.go.id (Directorate General of Legislation): Dasar Hukum lists Peraturan Presiden Nomor 98 Tahun 2021; Berita Negara 2022 No. 1064. https://peraturan.go.id/id/permen-lhk-no-21-tahun-2022 ↩︎

  4. [P] Permen LHK 21/2022, Pasal 4 to Pasal 7. regulation_id PERMEN_LHK_21_2022. ↩︎ ↩︎ ↩︎

  5. [P] Permen LHK 21/2022, Pasal 73 to Pasal 77. regulation_id PERMEN_LHK_21_2022. ↩︎ ↩︎

  6. [P] Permen LHK 21/2022, Pasal 28 to Pasal 35. regulation_id PERMEN_LHK_21_2022. ↩︎ ↩︎ ↩︎

  7. [P] Permen LHK 21/2022, Pasal 38 to Pasal 41. regulation_id PERMEN_LHK_21_2022. ↩︎ ↩︎

  8. [P] Permen LHK 21/2022, Pasal 42 ayat (1) and (2) and Pasal 1 angka 25. regulation_id PERMEN_LHK_21_2022. ↩︎ ↩︎

  9. [P] Peraturan Presiden Nomor 110 Tahun 2025 tentang Penyelenggaraan Instrumen Nilai Ekonomi Karbon dan Pengendalian Emisi Gas Rumah Kaca Nasional, Pasal 100 huruf c and Pasal 101; signed and promulgated 10 October 2025. regulation_id PERPRES_110_2025. ↩︎

  10. [E] "How Are Greenhouse Gas Inventories Conducted Under PERMENLHK 21/2022?", CRPG regulatory tracker, crpg.id, 26 November 2025. https://crpg.id/how-are-greenhouse-gas-inventories-conducted-under-permenlhk-21-2022/ (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. ↩︎

  11. [P] Permen LHK 21/2022, Pasal 2 and Pasal 3. regulation_id PERMEN_LHK_21_2022. ↩︎

  12. [P] Permen LHK 21/2022, Pasal 1 angka 1, 13, 24, 25, 33, 34, 35, 43 and 44. regulation_id PERMEN_LHK_21_2022. The held copy (from pasal.id) carries the body and closing formula but not the preamble. ↩︎

  13. [P] Permen LHK 21/2022, Pasal 9 to Pasal 13, including Pasal 12 ayat (7) (banking for up to two years). regulation_id PERMEN_LHK_21_2022. ↩︎

  14. [P] Permen LHK 21/2022, Pasal 14 to Pasal 17. regulation_id PERMEN_LHK_21_2022. ↩︎

  15. [P] Permen LHK 21/2022, Pasal 18 to Pasal 21, Pasal 24 and Pasal 25. regulation_id PERMEN_LHK_21_2022. ↩︎

  16. [P] Permen LHK 21/2022, Pasal 23 and Pasal 27. regulation_id PERMEN_LHK_21_2022. ↩︎

  17. [P] Permen LHK 21/2022, Pasal 44 to Pasal 54 and Pasal 56. regulation_id PERMEN_LHK_21_2022. ↩︎

  18. [P] Permen LHK 21/2022, Pasal 58. regulation_id PERMEN_LHK_21_2022. ↩︎

  19. [P] Permen LHK 21/2022, Pasal 60 and Pasal 61. regulation_id PERMEN_LHK_21_2022. ↩︎

  20. [P] Permen LHK 21/2022, Pasal 66 and Pasal 67. regulation_id PERMEN_LHK_21_2022. ↩︎

  21. [P] Permen LHK 21/2022, Pasal 68 to Pasal 72. regulation_id PERMEN_LHK_21_2022. ↩︎

  22. [P] Permen LHK 21/2022, Pasal 78 and Pasal 82 to Pasal 84. regulation_id PERMEN_LHK_21_2022. ↩︎

  23. [P] Permen LHK 21/2022, Pasal 26 (Lampiran I). regulation_id PERMEN_LHK_21_2022. ↩︎

  24. [P] Permen LHK 21/2022, Pasal 63 ayat (3) (Lampiran II). regulation_id PERMEN_LHK_21_2022. ↩︎

  25. [P] Permen LHK 21/2022, Pasal 65 ayat (5) (Lampiran III). regulation_id PERMEN_LHK_21_2022. ↩︎