akar.earthPTBAE-PU: Emission Allowances for Business Actors
PTBAE-PU explained: Indonesia's emission allowance for capped companies, how it trades on IDXCarbon, and where forest offsets fit in the compliance market.
PTBAE-PU (Persetujuan Teknis Batas Atas Emisi bagi Pelaku Usaha) is Indonesia’s emission allowance: a ministry-issued approval that sets the upper emission limit for a company in a capped sector for a given period. Companies below their cap can sell surplus allowances, and companies above it must buy allowances or, where allowed, offsets, mainly through IDXCarbon.
What PTBAE-PU is
Indonesia’s carbon economic value (NEK) framework has two trading routes. “Emissions trading” uses caps and allowances. “Offsetting” uses certified reductions. PTBAE-PU is the unit of the first route, and SPE-GRK is the unit of the second.
IDXCarbon’s FAQ defines PTBAE-PU as the official greenhouse gas emission-quota permit for a period, issued by the relevant ministry to companies classified as Compliance Companies. Secondary sources describe the result as a cap-and-trade mechanism for businesses that have an emissions ceiling.
The legal basis runs from Perpres 98/2021, which introduced emissions trading as an NEK instrument, to Perpres 110/2025, the current anchor. Sector ministries set the caps for their own sectors.
Who it applies to
So far, PTBAE-PU is a compliance instrument for specific sectors, not a general obligation on all companies. The first and best-known application is coal-fired power generation. An Energy and Mineral Resources (ESDM) ministerial regulation issued in 2022 set the framework, and trading among power plants began in 2023.
Other sectors may follow under Perpres 110/2025 and sector rules. We have not confirmed a published, dated schedule for adding new sectors. If your company operates in energy, industry or another emitting sector, check with the sector ministry whether you are, or will be, a compliance company.
Forest-carbon project developers do not receive PTBAE-PU. Their link to this market is indirect: forest offsets may become a source of supply for capped companies, if the rules allow it.
What it requires
For a compliance company, the cycle looks like this:
- Allocation. The ministry sets the cap and issues PTBAE-PU for the period.
- Monitoring and reporting. The company measures and reports actual emissions.
- Balancing. A company with a surplus can sell it. A company with a deficit buys allowances or, within limits, offsets.
- Surrender. The company surrenders units to the ministry for compliance.
Surrender cannot be done through IDXCarbon. The exchange is a trading venue, and compliance surrender is an administrative step with the ministry. This is different from SPE-GRK, which buyers can retire on IDXCarbon to support an offset claim.
Under POJK 10/2026, units traded on the exchange must be recorded in SRUK, which replaces SRN-PPI for this purpose.
| Feature | PTBAE-PU | SPE-GRK |
|---|---|---|
| Type | Allowance (cap-and-trade) | Offset certificate |
| Issued to | Compliance companies | Mitigation project proponents |
| Trading on IDXCarbon | Yes | Yes |
| Final step | Surrender to ministry (not via IDXCarbon) | Retirement (can be via IDXCarbon) |
What it means for developers and buyers
For forest-carbon developers, the compliance market is a potential, not a guaranteed, source of demand. Research from BeZero and others points to “restrictive compliance eligibility” as one reason Indonesian credits trade at a fraction of real abatement cost. If the rules on offset use by capped companies widen, demand for domestic nature-based SPE-GRK could grow. If they stay narrow, forest projects will continue to rely mainly on voluntary and international buyers.
For corporate buyers outside the capped sectors, PTBAE-PU is mostly background. It does show that Indonesia runs a working, OJK-supervised trading infrastructure, which supports confidence in the exchange as a venue for voluntary retirement.
For capped companies, the questions are practical: what share of a deficit can be covered by offsets, which offset types qualify, and what vintage and registry rules apply. Our carbon strategy work maps these questions for buyers, and the guide on compliance vs voluntary markets explains the wider distinction.
Relationship to the carbon tax
Indonesia’s carbon tax law, introduced in 2021, was designed to work with the cap-and-trade system: emissions above the cap would face the tax if not covered by allowances or offsets. The tax has not been fully implemented. See Indonesia’s carbon tax for its status.
Open questions
- Sector expansion. Which sectors will be capped next, and when, is not settled in the sources we reviewed.
- Offset limits. The share of compliance that can be met with SPE-GRK, and whether nature-based units qualify on equal terms, should be checked in the current sector regulation.
- Price signal. IDXCarbon publishes aggregate volume and value, but not a clear allowance price series in the material we reviewed.
For a full view of the domestic framework, start at the Indonesia regulation hub.
Frequently asked questions
What does PTBAE-PU mean?
Persetujuan Teknis Batas Atas Emisi bagi Pelaku Usaha: a technical approval of the upper emission limit for a business actor. In practice it works as an emission allowance under a cap-and-trade system.
Which companies receive PTBAE-PU?
Companies classified as compliance companies by the relevant ministry. The first sector covered was coal-fired power generation, which started trading in 2023.
Can PTBAE-PU be surrendered on IDXCarbon?
No. IDXCarbon trades PTBAE-PU, but surrender to the ministry for compliance happens outside the exchange. Retirement through IDXCarbon applies to SPE-GRK offsets.
Can a compliance company use forest carbon offsets?
The NEK framework allows offsetting in principle, but whether and how much depends on the sector rules. Check the current ministry regulation for the sector before relying on forest SPE-GRK.