akar.earthCorresponding Adjustments for Indonesian Credits
Corresponding adjustments in Indonesia explained: when exported carbon units need authorisation, how this links to the NDC, and what buyers should ask for.
A corresponding adjustment is the accounting step that stops an Indonesian tonne from being counted twice: once in Indonesia’s NDC and again by a foreign buyer or country. Indonesia requires government authorisation and a corresponding adjustment for some foreign transfers of carbon units, especially those used under Article 6 of the Paris Agreement, but not for every export.
What a corresponding adjustment is
Under Article 6 of the Paris Agreement, countries can transfer mitigation outcomes to each other. When the host country authorises a transfer, it applies a corresponding adjustment: it adds the transferred tonnes back to its own emissions balance. The buying country, or a buyer using the unit for an international purpose, can then count the reduction without double counting.
Units authorised and adjusted this way are often called ITMOs under Article 6.2, or A6.4ERs under the Article 6.4 mechanism. The Article 6 hub and our guide on Article 6.2 ITMOs explain the international side.
How Indonesia handles it
Indonesia’s carbon economic value (NEK) framework covers both domestic and international trading. It was set up by Perpres 98/2021 and is now anchored in Perpres 110/2025. The Komrah NEK secretariat lists Article 6 schemes alongside carbon trading, results-based payments and the carbon levy as NEK instruments.
Recent sector rules make the split explicit. Secondary analysis of Permen LH/BPLH 11/2026, the waste-sector trading regulation, reports that foreign trading is divided into:
- transfers that require authorisation and a corresponding adjustment, including Article 6.2 and 6.4 uses; and
- transfers that do not require them.
The forestry procedure, Permenhut 6/2026, adds that projects seeking international market access must meet principles including additionality, benefit-sharing and free, prior and informed consent, according to a Ministry of Forestry official. We have not reviewed the full text of its authorisation provisions.
Context matters. Earlier regulations aimed at NDC alignment were followed by a period in which, according to an IETA paper, international carbon financing to Indonesia “effectively came to a halt”. The 2025–2026 reforms aim to reopen international access with clearer rules.
Who it applies to
- Project developers selling to foreign buyers who need adjusted units, or to countries buying ITMOs.
- Foreign buyers, including airlines needing CORSIA-eligible units and companies making claims that count against a national target.
- Government agencies that must track transfers against Indonesia’s NDC.
Domestic buyers retiring SPE-GRK in Indonesia for a domestic claim do not need an adjustment.
What it means for forest-carbon developers and buyers
Authorisation is a design decision. Forestry and land use carry the largest share of Indonesia’s NDC reductions. Every forest tonne exported with an adjustment makes Indonesia’s own target harder to meet. Expect the government to be selective, and expect authorisation to come with conditions.
Price differences follow. Adjusted units usually command a premium because they support stronger claims. A project that plans for authorisation should budget for longer timelines and possibly a share of proceeds or levy, though we have not verified any Indonesian fee or share for this.
Buyers should match unit to claim.
| Buyer’s intended claim | Corresponding adjustment needed? |
|---|---|
| Contribution claim (support for Indonesia’s climate action) | Usually no |
| Offset against own corporate target in voluntary frameworks | Depends on the framework; check its guidance |
| CORSIA compliance | Yes, under CORSIA eligibility rules |
| Counting towards another country’s NDC (Article 6.2) | Yes |
For CORSIA, see CORSIA eligible units. For the paperwork, see our guide to authorisation letters.
Registry matters. Units traded on IDXCarbon must be recorded in SRUK. Authorisation status should be visible on the unit record. Ask for it in writing before you sign.
Contract terms worth adding
Until the authorisation procedure is fully public, buyers and sellers can manage the risk in the contract. Common approaches are to make delivery of an authorised, adjusted unit a condition of payment, to price adjusted and non-adjusted units separately, and to agree what happens if authorisation is refused or delayed. Specialist legal advice on offtake terms covers these clauses in more detail.
Open questions
- Detailed authorisation procedure. Which body signs, the timeline, and whether authorisation can be granted before issuance were not established in the sources we reviewed. Read Perpres 110/2025 and sector regulations on JDIH or peraturan.go.id.
- Forestry-specific rules. How Permenhut 6/2026 applies the authorisation split to forest units should be checked in the full text.
- Fees or share of proceeds. Not verified.
- Treatment of legacy credits issued under international standards before the new rules.
Our carbon strategy service helps buyers and developers decide whether an adjusted unit is needed. For the full domestic framework, see the Indonesia regulation hub.
Frequently asked questions
What is a corresponding adjustment?
An accounting entry under Article 6 of the Paris Agreement. When Indonesia authorises a mitigation outcome for transfer abroad, it adjusts its emissions balance so the same tonne is not counted towards both Indonesia's NDC and the buyer's target.
Do all Indonesian carbon credits need a corresponding adjustment?
No. Indonesian sector rules distinguish foreign transfers that require authorisation and a corresponding adjustment, including Article 6.2 and 6.4 uses, from those that do not. Which category applies depends on the intended use.
Who authorises a corresponding adjustment in Indonesia?
Authorisation is a government decision under the NEK framework. The detailed procedure, including which ministry signs and on what timeline, should be confirmed in Perpres 110/2025 and the current sector regulation.
Does a buyer need a corresponding adjustment for a voluntary claim?
Not always. Contribution claims usually do not need one. Claims that count towards another country's target, CORSIA or some compensation claims do. Match the unit to your claim before buying.