Regulation
NEK
Also known as: Nilai Ekonomi Karbon, carbon economic value
TL;DR
Indonesia's official term for 'carbon economic value' — the umbrella framework introduced by Perpres 98/2021 that covers pricing, trading, taxes, and result-based payments.
Full explainer
NEK — Nilai Ekonomi Karbon, literally 'carbon economic value' — is the term used in Indonesian regulation to refer to the entire policy framework for monetising carbon emissions and removals. It is the umbrella concept that subsumes four specific mechanisms: cap-and-trade (perdagangan emisi karbon), carbon offsets (offset emisi karbon), result-based payments (pembayaran berbasis kinerja), and the carbon tax (pajak karbon).
Perpres 98/2021 is the founding NEK regulation. It established the legal scope of each of the four mechanisms and assigned coordinating responsibility to KLHK with supporting roles for OJK (financial markets), Kemenkeu (taxation and result-based payments via BPDLH), and BAPPENAS (planning). Perpres 110/2025 extended the NEK framework to authorise international cooperation under Article 6 of the Paris Agreement.
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