Permendag

Full explainer

Permendag — Peraturan Menteri Perdagangan, Trade Ministry Regulation — is the operational regulation issued by Indonesia's Ministry of Trade. The most consequential Permendag in the carbon space is Permendag 21/2022 on Trade of Carbon Units, which (in combination with the parent UU 7/2014 on Trade) established the legal basis for treating carbon credits as a tradeable commodity within Indonesian law and authorised the establishment of the carbon exchange (later licensed by OJK as IDXCarbon).

Permendag also governs cross-border carbon commerce: the rules for exporting carbon credits issued in Indonesia, the licensing of importers/exporters, and the customs treatment of foreign-origin carbon units. Indonesian compliance carbon trading thus operates under a stack of overlapping instruments: KLHK's Permenhut for forestry-derived credits, OJK's POJK for exchange operations, and Permendag for cross-border trade in the resulting units.

Related terms

• Permenhut
• POJK
• IDXCarbon
• KLHK