Regulation Watch · Environmental Compliance · Indonesia. The regulation applies nationally to businesses whose activities have the potential to emit greenhouse gases and fall within an NDC sector or subsector covered by Indonesia's emissions-reduction target. The listed sectors are energy, waste, industrial processes and product use, agriculture, forestry, marine affairs and fisheries, and any later designated sector.
Covered Companies Must File Annual GHG Reports by March
Permen LH/BPLH 7/2026 requires covered businesses in Indonesia's NDC sectors to prepare annual company greenhouse-gas inventories, report them by March, report mitigation actions through SRN PPI and register climate actions in the national system.
- Published
- Established by the Minister of Environment and Head of the Environmental Control Agency on 4 June 2026 and promulgated on 15 June 2026 in State Bulletin 2026 No. 388.
- Effective
- 15 June 2026. The regulation took effect on promulgation and replaced the 2024 NDC administration regulation together with the former national registry, MRV, greenhouse-gas inventory and climate-risk guidelines listed in Article 111.
- Added to Watch
- 28 October 2026
Who is affected
PT PMA and PT PMDN companies with covered emitting activities in energy, transport, buildings, industrial processes, waste, wastewater, agriculture, livestock, plantations, forestry, peatland, mangrove, blue-carbon, marine or fisheries activities; foreign and Indonesian directors and shareholders; operators of facilities and projects; carbon-project sponsors; and environmental, sustainability, operations, finance, data, legal and compliance teams responsible for emissions data or climate actions.
Practical impact
A covered company must perform a company-level greenhouse-gas inventory for its business or activity area, covering relevant emission sources and gases, and submit the annual inventory report to the competent regency, province or sector ministry no later than March. A company implementing a mitigation action must measure it at least annually, submit the prescribed mitigation report by March in the following year and record the report in SRN PPI for validation and verification. Every responsible party for a mitigation or adaptation action, including a business or a party cooperating on the action, must register the action in SRN PPI. These obligations are separate from SRUK controls for issuing or trading carbon units, so a covered company may have NDC inventory and SRN PPI duties even when it does not sell carbon credits.
Late discovery: Permen LH/BPLH 7/2026 was established on 4 June, promulgated on 15 June 2026 in State Bulletin No. 388 and took effect that day. It replaces the 2024 NDC administration regulation and the former rules for the national climate registry, climate-action MRV, greenhouse-gas inventories, adaptation planning and climate-risk assessment listed in Article 111.
The business scope is specific. Company-level inventory duties apply to a business activity that has the potential to be a greenhouse-gas source and is included in an NDC sector or subsector under Indonesia's emissions-reduction target. The regulation lists energy, waste, industrial processes and product use, agriculture, forestry, marine affairs and fisheries, with subsectors including power, oil and gas, transport, buildings, solid and liquid waste, industry, rice, livestock, plantations, forestry, peat and mangrove management and blue carbon.
Each covered business must monitor, collect and calculate its relevant greenhouse-gas emissions or removals. The process includes activity data and emission or absorption factors, uncertainty and key-category analysis and quality assurance and control. The resulting company inventory report must state the emissions level, status and trend and follow the official Annex I structure.
The filing clock is annual. A business submits its inventory to the competent regent or mayor, governor or sector minister no later than March. The filing uses the information system managed by the Environment Ministry, with manual submission allowed when the system has a technical disruption. Responsibility for determining the correct receiving authority and preserving transmission evidence should be assigned before filing.
Mitigation actions have a related but distinct MRV route. A business report can be subject to measurement, reporting and verification. Measurement occurs at least annually and captures the baseline, action, activity data, annual emissions or removals and achieved reduction. The company submits its mitigation report by March in the following year and records it in SRN PPI as the basis for validation and verification.
SRN PPI is broader than the carbon-unit registry. Every responsible party for a mitigation or adaptation action, including a business, community or government body, must record the action in SRN PPI. A party cooperating on an action must also record it. SRN PPI holds action, inventory, NDC, resource and cooperation information and interoperates with SRUK for carbon-economy instruments.
A company therefore needs two linked controls where carbon units are involved. Permen LH/BPLH 7/2026 governs the company inventory, climate-action report, MRV and SRN PPI record. Permen LH/BPLH 10/2026 governs the separate SRUK record for carbon-unit issuance, ownership, use and transactions. Completion of one record does not automatically complete the other.
The regulation does not specify a standalone fine for a late company report. The operational risk is still material because an absent or unreliable record can block validation or verification, conflict with environmental and sector reporting, weaken a carbon-unit or financing claim and expose inaccurate statements to other environmental, licensing, disclosure, contractual or criminal consequences.
Required action
- Map each facility and activity to the regulation's NDC sectors and subsectors, identify emission and absorption sources, and document why each business unit is included or excluded from company-level reporting.
- Assign one accountable inventory owner and establish an annual data calendar for energy, fuel, industrial processes, products, transport, waste, wastewater, land, agriculture, forestry, marine and other relevant activity data.
- Calculate carbon dioxide, methane, nitrous oxide, hydrofluorocarbon, perfluorocarbon and sulfur-hexafluoride emissions where relevant, using the applicable IPCC method, available activity data, emission or absorption factors, uncertainty analysis, key-category analysis and quality controls.
- Prepare the company inventory in the official Annex I format, reconcile it to permits, environmental monitoring, production, utility, procurement, waste, transport and financial records, and submit it through the ministry system to the competent authority no later than March each year.
- For each mitigation action, document the baseline, target, method, location, implementation period, management system, resources, activity data, annual emissions or removals, constraints and achieved reduction or absorption.
- Submit the mitigation-action report by March in the following year, record it in SRN PPI and preserve the evidence needed for document review, clarification, validation and verification.
- Register every mitigation or adaptation action, and every cooperation arrangement supporting such an action, in SRN PPI with the required general and technical data. Reconcile SRN PPI records with SRUK if the activity also produces, uses or trades carbon units.
- Update contracts, board reporting and internal controls so data owners, project partners, consultants, validators and verifiers must provide complete, consistent and auditable information before the March filing clock.