Mutual Recognition Arrangement between the Government of Indonesia and the Gold Standard Foundation
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After a period of anticipation, on 8 May 2025, the Indonesian Ministry of Environment/Environmental Management Agency (Kementerian Lingkungan Hidup/Badan Pengendalian Lingkungan Hidup or “MOE”) signed a Mutual Recognition Arrangement (“MRA”) with Gold Standard, one of the world’s leading voluntary carbon market certification bodies. This landmark agreement marks the first formal collaboration between the Government of Indonesia and a voluntary carbon market standard, signaling a significant step forward in aligning Indonesia’s climate policy with internationally recognized mechanisms.
This ARMA Update will outline the implications, mutual recognition process, and further development for implementation of the MRA.
Implications
Under the MRA, the Indonesian Government will formally recognise emission reduction certifications issued by Gold Standard. Thus, projects will be able to continue or commence the certification under Gold Standard, provided they comply with Indonesian laws and undergo the required approval process.
This MRA is an implementation of the mutual recognition mechanism first introduced under the Article 77 of the Presidential Regulation No. 98 of 2021 regarding Implementation of Carbon Pricing for Achieving NDC Targets and later on Article 86 of the Minister of Environment and Forestry Regulation No. 21 of 2022 regarding the Guidelines of Carbon Pricing Implementation.
This agreement represents a significant step toward streamlining carbon credit certification and fostering greater alignment between Indonesia’s national goals and international market standards. By officially recognizing Gold Standard's certification, the MRA not only enhances the credibility of Indonesia's carbon market while still ensuring that it is in line with national regulations.
Mutual Recognition Process
In a talk show, following the signing of MRA, MOE’s Deputy for Climate Change Control and Carbon Economic Value Governance, Ir. Ary Sudijanto, MSE, and Gold Standard’s Senior Director of Market Development and Partnerships, Hugh Salway, pointed out the MRA’s mechanism.
Hugh Salway emphasized one of the key points of the MRA, in which project proponents who wish to obtain Gold Standard certification must complete a two-step process. First, they must secure initial approval from the National Registry System (“SRN PPI”) under the MOE, ensuring compliance with national requirements. Once this approval is granted, they may proceed with the Gold Standard certification.
Further, Ir. Ary Sudijanto, MSE added that projects already registered with SRN PPI do not need to undergo re-registration. However, they must still be submitted to SRN PPI for recognition. Carbon credits that have already been issued do not require conversion to Indonesian Certified Emission Reductions (Sertifikat Pengurangan Emisi Indonesia or “SPEI”) unless the project is transitioning from the voluntary market to the compliance market. For the voluntary market, SRN PPI will provide a certification label applicable to any credits issued under Gold Standard certification. If a project transitions to the compliance market, its carbon credits must be converted to SPEI. Additionally, any project seeking to participate in the Indonesian Carbon Exchange (also known as IDXCarbon must present its credits in SPEI form.
Further Developments for Implementation
When a project proponent selects Gold Standard certification, they will follow Gold Standard procedures, while SRN PPI maintains communication with Gold Standard to ensure coordination. Currently, the mutual recognition process will be conducted manually, as the mechanisms is developed along the way. To streamline and clarify this process, the MOE and Gold Standard will form a joint task force responsible for developing and overseeing the certification procedures under this MRA, as well as the mutual recognition of methodologies between the two registries.
Indonesia is currently negotiating several other MRAs with globally recognized institutions as well as several other countries, demonstrating its commitment to adopting international best practices and expanding global market access for its carbon market. This initiative further strengthens Indonesia’s position as a key player in global climate change mitigation efforts.
Disclaimer:
This client update is the property of ARMA Law and intended for providing general information and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. ARMA Law has no intention to provide a specific legal advice with regard to this client update.
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