As mandated by Presidential Regulation No. 98/2021 about the implementation of carbon pricing to achieve the nationally determined contribution target and control over GHG emissions in national development, Indonesia is currently working hand-in-hand to make a big step toward the implementation of that regulation. As stated in that regulation, the implementation of carbon pricing will be noted in the system called the National Registry System (NRS) by the Climate Change Directorate General of the Ministry of Environment and Forestry. NRS-CC, also known for its backbone transparency, will become a management system, data provision, and information-based web related to actions and resources for climate change mitigation, adaptation, and carbon pricing in Indonesia. Nowadays, NRS is in the process of being massively developed to become a vessel for those mechanisms.

Along with the implementation plan, Indonesia’s private sector is also ready to set up their project of reducing emissions suitable to the carbon pricing mechanism in Indonesia. They have prepared their obligations as mandated by the presidential regulation and its derivative regulation, the regulation of the Minister of Environment and Forestry of the Republic of Indonesia No. 21/2022 about the Procedure for Implementation of Carbon Pricing. According to that regulation, carbon pricing in Indonesia can be done by having Indonesia’s Certified Emissions Reduction (ICER), or SPE- GRK, in Bahasa. There are some steps that need to be followed to get the ICER or SPE GRK. One of the most important things is to ensure that each climate change mitigation action has a mitigation action plan document and a report on the achievement of emission reduction. Those documents need to be subjected to the validation and verification processes. Today, we have noted in NRS-CC that there are some actors who have already done so. According to the implementation plan for carbon pricing in Indonesia, it is important to know the preparation, challenges, and potential of carbon pricing, including the readiness of the system and lessons learned from the actors.