<![CDATA[The development of carbon trading in Indonesia has transformed carbon credits from environmental policy instruments into emerging economic assets with potential applications in sustainable finance. This article examines the legal status and characteristics of carbon credits under Indonesian law, particularly their classification as intangible, transferable assets that may serve as objects of fiduciary security. Employing a normative juridical approach, this study analyzes the relevant provisions of Indonesian security law, particularly Law No. 42 of 1999 on Fiduciary Security, together with the carbon regulatory framework established under Presidential Regulation No. 110 of 2025 on the Administration of Carbon Economic Value Instruments and the Control of National Greenhouse Gas Emissions. The analysis demonstrates that carbon credits possess characteristics consistent with those of intangible, transferable assets and, in principle, may satisfy the legal requirements for fiduciary security because they are identifiable, transferable, and capable of being recorded through digital carbon registry mechanisms. Nevertheless, the absence of specific rules governing the use of carbon credits as collateral creates substantial legal uncertainty regarding their classification, valuation, registration, monitoring, and enforcement, which may undermine their bankability and acceptance by financial institutions. Accordingly, regulatory reform is required to establish a comprehensive framework governing the use of carbon credits as collateral, thereby strengthening creditor protection, facilitating sustainable financing, and supporting the development of Indonesia’s carbon market and broader climate policy objectives]]>
Copyrights © 2026
