Kemenkeu

Full explainer

Kemenkeu — Kementerian Keuangan, the Ministry of Finance — owns the fiscal levers of Indonesia's climate policy. The 2021 HPP Law (Undang-Undang Harmonisasi Peraturan Perpajakan) introduced a Rp 30/kgCO₂e carbon tax that Kemenkeu administers (its implementation has been deferred multiple times). Kemenkeu also supervises BPDLH, the Environment Fund Management Agency, and through BPDLH controls the disbursement of REDD+ result-based payments and other climate finance flows.

Kemenkeu's role differs from KLHK and OJK: it is the budget and tax authority, not a sectoral regulator of either forestry or financial markets. But it sits behind any cross-ministerial carbon-pricing framework — Perpres 98/2021 and Perpres 110/2025 both require Kemenkeu approval for fiscal measures, and BPDLH cannot disburse without Kemenkeu authorisation.

Authoritative source

Related terms

• BPDLH
• Perpres