Economic Value of Carbon (NEK) Trading Scheme — power sector ETS

The NEK trading scheme is an intensity-based ETS for the power sector, launched on 22 February 2023 under Presidential Regulation No. 98/2021 and MEMR Regulation No. 16/2022, initially covering 99 coal-fired plants above 100 MW. Phase 1 covered 2023–2024 and Phase 2 covers 2025–2027. Coverage grew from 146 installations in 2024 to 563 in 2025, including captive coal plants and gas-fired generation.

Presidential Regulation No. 110/2025, set and promulgated on 10 October 2025, provides a framework for a domestic trading system, a carbon levy that acts as a backstop for entities that do not surrender sufficient units, and results-based payments linked to Article 6 of the Paris Agreement, with a new carbon unit registry. ICAP reports that, because of these regulatory changes, the 2025 allocation was postponed and no allowances had been issued and no trading had taken place as of January 2026; reporting obligations still applied. The Indonesian Carbon Exchange (IDXCarbon) launched in September 2023 under the Financial Services Authority.