From Unified to Dual Registry: PERPRES 110/2025's Carbon Tracking Architecture
From Unified to Dual Registry: PERPRES 110/2025's Carbon Tracking Architecture
PERPRES 110/2025 Comparative Analysis Series - Article 5 of 5
This series analyzes the comprehensive transformation from PERPRES 98/2021 to PERPRES 110/2025:
- From Carbon Rights to Carbon Allocation - The Paradigm Shift
- Emissions Trading Infrastructure - From Batas Atas to Quota System
- International Carbon Markets - Otorisasi and Corresponding Adjustment
- Dual Certification Pathway - DRAM vs DPP Documentation
- Registry Evolution - From Single SRN PPI to Dual Registry System
Articles 1(19) and 1(20) of PERPRES 110/2025 fundamentally restructure Indonesia's carbon data infrastructure by introducing a dual-registry architecture. While PERPRES 98/2021 relied on a single Sistem Registri Nasional Pengendalian Perubahan Iklim (SRN PPI - National Climate Change Control Registry System) to track all climate actions, carbon units, and NEK activities, the 2025 regulation separates these functions. Article 1(19) redefines SRN PPI more narrowly as "sistem penyediaan dan pengelolaan data dan informasi tentang aksi serta sumber daya untuk Mitigasi Perubahan Iklim dan Adaptasi Perubahan Iklim di Indonesia pada tingkat NDC" (system for provision and management of data and information regarding actions and resources for Climate Change Mitigation and Adaptation in Indonesia at NDC level). Article 1(20) introduces Sistem Registri Unit Karbon (SRUK - Carbon Unit Registry System) as "sistem penyediaan dan pengelolaan data dan informasi terkait Unit Karbon pada tingkat penyelenggaraan instrumen NEK" (system for provision and management of data and information related to Carbon Units at NEK instrument implementation level). This bifurcation creates specialized infrastructure: SRN PPI for high-level NDC tracking and SRUK for detailed carbon unit transaction management (see Matrix 1.1 below).
1.0 Registry Architecture Transformation
1.1 From Unified to Specialized Systems
PERPRES 98/2021 Article 1(14) defined SRN PPI as "sistem pengelolaan, penyediaan data dan informasi berbasis web tentang aksi dan sumber daya untuk Mitigasi Perubahan Iklim, Adaptasi Perubahan Iklim, dan NEK di Indonesia" (web-based management system, providing data and information about actions and resources for Climate Change Mitigation, Adaptation, and NEK in Indonesia). This comprehensive definition positioned SRN PPI as the single repository for all climate-related data: mitigation actions, adaptation actions, NEK implementation, and carbon unit tracking. The regulation's Article 69 mandated that "setiap Pelaku Usaha wajib mencatatkan dan melaporkan" (every Business Actor must register and report) all climate actions and NEK activities in SRN PPI.
The unified architecture created potential operational challenges. Combining NDC-level aggregated reporting (e.g., national emission reductions by sector) with transaction-level carbon unit tracking (e.g., individual Unit Karbon transfers between entities) in a single system risked data complexity, performance bottlenecks, and conflation of distinct data types. NDC tracking requires temporal aggregation and sector categorization; carbon unit tracking requires unique serial numbers, ownership records, and transaction histories. Forcing both into one system may have contributed to implementation delays.
Matrix 1.1: Registry Architecture Evolution
1.2 SRN PPI Refocused on NDC-Level Tracking
PERPRES 110/2025 retains SRN PPI but refocuses its mandate. The new definition emphasizes "pada tingkat NDC" (at NDC level), suggesting the registry will aggregate and report climate actions for national NDC accounting and UNFCCC transparency reporting. This aligns with Paris Agreement requirements for tracking progress toward nationally determined contributions. SRN PPI becomes the authoritative source for demonstrating Indonesia's emission reduction trajectory and adaptation capacity enhancement at the macro level.
The refocusing implies SRN PPI will primarily serve government reporting needs: tracking sectoral emission reductions, monitoring adaptation projects, aggregating provincial and national contributions, and generating biennial transparency reports. It shifts from being a transactional database (tracking individual carbon unit trades) to a strategic monitoring tool (tracking whether Indonesia is on track to meet its NDC commitments). This distinction better aligns with international climate reporting frameworks where individual transactions are less important than aggregate progress.
Matrix 1.2: SRN PPI Functional Evolution
2.0 SRUK: Dedicated Carbon Unit Infrastructure
2.1 Purpose and Scope of SRUK
Article 1(20) introduces SRUK specifically for "data dan informasi terkait Unit Karbon pada tingkat penyelenggaraan instrumen NEK" (data and information related to Carbon Units at NEK instrument implementation level). This definition creates a specialized registry for tracking carbon units throughout their lifecycle: issuance, ownership, transfer, retirement, and cancellation. The "tingkat penyelenggaraan instrumen NEK" (NEK instrument implementation level) language indicates SRUK operates at transactional granularity rather than aggregate NDC level.
SRUK's introduction addresses the need for detailed carbon market infrastructure comparable to international registries like the Verra Registry, Gold Standard Registry, or Clean Development Mechanism Registry. These systems maintain unique serial numbers for each carbon unit, ownership records, transaction histories, vintage years, project identifications, and retirement tracking. Without such infrastructure, Indonesia's domestic carbon market would lack credibility—buyers need assurance that units are not double-counted, double-sold, or fraudulent.
Matrix 2.1: SRUK Characteristics
2.2 Integration with Emissions Trading and Carbon Trading
SRUK's design must support both Perdagangan Emisi GRK (quota trading among Instalasi yang Diatur) and Perdagangan Karbon (unit trading in voluntary markets). Article 1(23) defines Emissions Trading as "mekanisme transaksi Kuota Emisi GRK di antara Pelaku Usaha" (transaction mechanism for GHG Emission Quotas among Business Actors). Article 1(15) specifies "Kuota Emisi GRK adalah jumlah Emisi GRK yang dapat dilepaskan ke atmosfer oleh Instalasi yang Diatur" (GHG Emission Quota is the amount of GHG Emissions that can be released to the atmosphere by Regulated Installations). Article 1(18) further defines Unit Karbon to include quotas: "hasil pengurangan dan/atau penyerapan emisi yang disertifikatkan melalui skema sertifikasi domestik, sertifikasi internasional, atau Kuota Emisi GRK" (results of reduction and/or absorption certified through domestic certification, international certification, or GHG Emission Quotas).
This integration suggests SRUK must track two distinct instrument types: (1) compliance quotas allocated to Regulated Installations for emissions trading, and (2) voluntary carbon units generated from mitigation projects for carbon trading. The registry must prevent crossover issues—ensuring compliance quotas cannot be double-used as voluntary offsets unless specifically permitted, and maintaining separate accounting pools. The technical complexity mirrors EU ETS registry challenges in distinguishing allowances from Kyoto Protocol units.
Matrix 2.2: SRUK Dual Market Support
3.0 Data Flow Between Registries
3.1 SRN PPI and SRUK Interoperability
While PERPRES 110/2025 establishes two separate registries, effective climate accounting requires data exchange between them. SRN PPI needs aggregated data from SRUK to report NDC progress—if Indonesia's NDC includes emissions trading system performance, SRN PPI must access SRUK data showing total quota allocations, trading volumes, and compliance status. Conversely, SRUK needs SRN PPI baseline data to verify that carbon unit issuance aligns with national emission inventories and avoids over-crediting.
The regulation does not specify interoperability mechanisms, leaving implementation to forthcoming technical regulations. Likely approaches include: (1) API-based data exchange where SRUK periodically transmits aggregated statistics to SRN PPI, (2) shared data warehouse architecture where both systems write to common underlying databases, (3) manual reporting procedures where SRUK administrators submit periodic reports to SRN PPI custodians, or (4) unified portal architecture where both registries share common user interfaces despite separate backend systems.
Matrix 3.1: Registry Interoperability Requirements
3.2 Avoiding Double Counting Across Registries
The dual-registry structure creates potential double-counting risks if not carefully managed. Consider a renewable energy project that (1) generates carbon units registered in SRUK for voluntary market sale, and (2) contributes to sectoral emission reductions tracked in SRN PPI for NDC reporting. If both the sold carbon units and the NDC reduction claim the same emission reductions, Indonesia double-counts, violating Paris Agreement integrity.
PERPRES 110/2025 addresses this partially through Article 1(28)'s Corresponding Adjustment mechanism, which requires accounting adjustments when Carbon Units transfer internationally. However, domestic transactions between SRUK and SRN PPI also need double-counting prevention. Solutions include: (1) mandatory unit retirement in SRUK when reductions count toward NDC in SRN PPI, (2) tagging units in SRUK as "NDC-contributing" versus "non-NDC" to prevent cross-claiming, (3) periodic reconciliation procedures comparing SRUK issuance totals against SRN PPI sectoral reductions, and (4) integrated verification where MRV bodies check both registries before certifying reductions.
Matrix 3.2: Double Counting Prevention
4.0 Implementation Challenges
4.1 Technical Infrastructure Development
Implementing a dual-registry system requires significant technical investment. PERPRES 98/2021's single SRN PPI was never fully operationalized at the scale envisioned by the regulation—limited public information exists on its functionality, user base, or data completeness. Building SRUK from scratch while upgrading SRN PPI presents multiple challenges: (1) technical architecture decisions (cloud vs on-premise, database technologies, API standards), (2) cybersecurity for preventing fraud and unauthorized access, (3) user authentication and authorization systems, (4) mobile accessibility for field-based monitoring, (5) data backup and disaster recovery, (6) scalability to handle millions of carbon units, and (7) integration with international registries.
The timeline for development is ambitious if Indonesia aims to operationalize both registries before international Article 6 markets fully launch (anticipated 2025-2026). International experience suggests registry development takes 2-3 years minimum—the EU ETS registry required extensive development and testing before becoming operational. Indonesia may consider interim solutions such as contracting with existing international registry platforms (Verra, Gold Standard) to host SRUK initially while developing domestic capacity, or building SRUK incrementally starting with pilot sectors.
Matrix 4.1: Registry Development Requirements
4.2 Regulatory and Procedural Gap
PERPRES 110/2025 provides definitional framework but leaves operational procedures to implementing regulations. At minimum, forthcoming ministerial regulations must address: (1) SRUK registration procedures for carbon units, (2) account opening requirements for market participants, (3) transaction approval workflows, (4) retirement and cancellation procedures, (5) authorization application procedures for international transfers, (6) corresponding adjustment calculation methodologies, (7) data exchange protocols between SRN PPI and SRUK, (8) MRV integration with registry systems, (9) fee structures for registry services, and (10) enforcement mechanisms for non-compliance.
Until these implementing regulations issue, market participants face uncertainty. Project developers cannot register carbon units because procedures don't exist. Regulated Installations cannot trade quotas because trading platforms are undefined. International buyers cannot purchase Indonesian units because authorization procedures are not specified. This regulatory gap may delay market operationalization by 1-2 years beyond PERPRES 110/2025's enactment, similar to delays experienced under PERPRES 98/2021 which took years to produce implementing regulations that never fully materialized.
Matrix 4.2: Implementing Regulation Needs
5.0 International Registry Interoperability
5.1 Cross-Border Unit Recognition
PERPRES 110/2025 Article 1(18) recognizes "sertifikasi internasional" (international certification) as a source of Unit Karbon, implying Indonesian registry systems must interact with international registries. When an Indonesian project uses the DPP pathway (Article 1(41)) to generate non-SPE GRK units certified under Verra VCS, those units initially register in the Verra Registry. For Indonesia to track these units domestically (for NDC accounting, authorization, or domestic trading), SRUK must either: (1) import unit data from Verra Registry through API integration, (2) require duplicate registration where units register in both Verra and SRUK, or (3) establish mutual recognition where SRUK accepts Verra registry records as authoritative.
The reciprocal question arises: will international registries recognize SRUK-registered units? If an Indonesian project generates SPE GRK units through the DRAM pathway (Article 1(40)) and registers them in SRUK, can those units be recognized in international registries for foreign buyers? This requires SRUK to meet international registry standards for data integrity, transparency, and security—standards documented in frameworks like the International Carbon Reduction and Offset Alliance (ICROA) registry requirements or Article 6 technical guidance. Failure to meet these standards could limit international market access for Indonesian units.
Matrix 5.1: International Registry Interoperability
Continue Reading: PERPRES 110/2025 Comparative Analysis Series
This series analyzes the comprehensive transformation from PERPRES 98/2021 to PERPRES 110/2025:
- Article 1: From Carbon Rights to Carbon Allocation - The Paradigm Shift
- Article 2: Emissions Trading Infrastructure - From Batas Atas to Quota System
- Article 3: International Carbon Markets - Otorisasi and Corresponding Adjustment
- Article 4: Dual Certification Pathway - DRAM vs DPP Documentation
- Article 5 (this article): Registry Evolution - From Single SRN PPI to Dual Registry System
PERPRES 110/2025 Comparative Analysis Series - Article 5 of 5
This series analyzes the comprehensive transformation from PERPRES 98/2021 to PERPRES 110/2025:
- From Carbon Rights to Carbon Allocation - The Paradigm Shift
- Emissions Trading Infrastructure - From Batas Atas to Quota System
- International Carbon Markets - Otorisasi and Corresponding Adjustment
- Dual Certification Pathway - DRAM vs DPP Documentation
- Registry Evolution - From Single SRN PPI to Dual Registry System
LEGAL DISCLAIMER: This analysis compares carbon registry infrastructure in PERPRES 98/2021 and PERPRES 110/2025 for educational purposes. It does not constitute legal advice, registry implementation guidance, or data management counsel. The introduction of SRUK alongside refocused SRN PPI affects carbon unit tracking, NDC reporting, market transaction infrastructure, and international registry interoperability. Specific implementation requires consideration of: (1) forthcoming ministerial regulations defining SRUK registration procedures and data standards, (2) SRN PPI refocusing implementation and legacy data migration, (3) interoperability protocols between SRN PPI and SRUK to prevent double counting, (4) integration requirements with international registries for cross-border unit recognition, (5) technical architecture decisions for registry software development, (6) cybersecurity measures for fraud prevention and data integrity, (7) fee structures for registry services and account management, (8) MRV integration with both registry systems, (9) user authentication and authorization procedures, and (10) timeline for registry operationalization and market launch. Entities developing carbon projects or participating in emissions trading systems should consult qualified environmental law, carbon market, and IT infrastructure counsel specializing in registry systems for guidance on registration requirements and technical compliance when implementing regulations become available.
Law Database
Access PERPRES 110/2025 in the CRPG Law Database: PERPRES 110/2025