What Are the Key Requirements Under PERPRES 110/2025?

1.0 Regulatory Foundation

PERPRES 110/2025, enacted in 2025, formalizes Indonesia’s commitment to climate action under the Paris Agreement. It introduces economic instruments for carbon valuation (Nilai Ekonomi Karbon/NEK) and national GHG emissions control, aligning with updated Nationally Determined Contributions (NDCs). The regulation mandates cross-sectoral coordination to balance economic growth with climate resilience.

Key Definitions (Pasal 1):
1. NDC: “Komitmen nasional bagi penanganan perubahan iklim global yang diperbarui secara berkala dalam rangka mencapai tujuan Persetujuan Paris”
Translation: National commitment for addressing global climate change, updated periodically to achieve Paris Agreement goals.
2. Alokasi Karbon: “Jumlah emisi karbon dioksida ekuivalen (CO₂e) yang diizinkan selama periode waktu tertentu sesuai kapasitas nasional”
Translation: Permitted CO₂e emissions during a specified period based on national capacity.
3. NEK: “Nilai terhadap setiap unit emisi gas rumah kaca yang dihasilkan dari kegiatan manusia dan kegiatan ekonomi”
Translation: Value per unit of GHG emissions from human and economic activities.

Matrix 1.1: Key Definitions

2.0 Core Framework

The regulation establishes a dual framework: mitigation (emissions reduction) and adaptation (climate resilience).

Mitigation (Pasal 34):
“Ketentuan lebih lanjut mengenai tata cara penyelenggaraan Mitigasi Perubahan Iklim… diatur dalam Peraturan Menteri”
Translation: Detailed mitigation procedures will be regulated via Ministerial Regulations.

Adaptation (Pasal 35):
Adaptation measures follow three stages:
1. Planning (perencanaan)
2. Implementation (pelaksanaan)
3. Monitoring & Evaluation (pemantauan dan evaluasi)
Led by national ministries, provincial governors, and local regents/mayors (Pasal 35(2)).

Matrix 2.1: Adaptation Sectors and Implementation Authorities

3.0 Implementation Requirements

Responsibilities:
- National: Set NDC targets, allocate carbon budgets, and issue NEK guidelines.
- Sub-National: Implement localized mitigation/adaptation plans (e.g., Jakarta’s flood resilience vs. Papua’s agro-climate initiatives).

Timeline:
- 2025–2026: Baseline emissions (Baseline Emisi GRK) and adaptation assessments.
- 2027–2030: Full NEK implementation and sectoral emissions reductions.

Matrix 3.1: Implementation Timeline

4.0 Enforcement & Sanctions

The regulation lacks explicit penalties but emphasizes compliance through:
1. Ministerial Regulations: Detailed sanctions for non-compliance (e.g., emissions exceeding Alokasi Karbon).
2. Public Reporting: Mandatory disclosure of emissions and mitigation progress.

5.0 Implications & Outlook

Stakeholder Impact:
- Industry: Higher operational costs from NEK compliance, but incentives for low-carbon technologies.
- Local Governments: Increased budget allocations for climate resilience (e.g., disaster preparedness).

Key Takeaways:
1. NEK Integration: Carbon pricing will reshape industrial and energy policies.
2. Sub-National Role: Provinces/cities must align development plans with NDC targets.
3. Private Sector Engagement: Voluntary carbon markets may emerge alongside regulatory frameworks.

Official Source

Full regulation text: https://peraturan.bpk.go.id/
Citation: Presiden Republik Indonesia, “Peraturan Presiden Nomor 110 Tahun 2025 tentang Penyelenggaraan Instrumen Nilai Ekonomi Karbon dan Pengendalian Emisi Gas Rumah Kaca Nasional.”

Law Database

Access PERPRES 110/2025 in the CRPG Law Database: PERPRES 110/2025

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