Indonesia introduces new regulation for agricultural carbon credits and farmer benefit-sharing

Indonesia has issued Minister of Agriculture Regulation No. 18 of 2026, establishing a formal governance framework for agricultural carbon credit projects in rice cultivation, livestock, and plantations. The regulation mandates that project developers enter into binding agreements with local farming communities, requiring collaboration with a minimum of three farmer organisations. These partnerships must include free, prior, and informed consent, written agreements, and flexible benefit-sharing arrangements based on project metrics. The framework also outlines technical requirements for project certification and registration in Indonesia's national carbon registry, the Sistem Registri Unit Karbon. This aims to integrate smallholder farmers into carbon markets and ensure equitable compensation.

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