Indonesia is exploring the possibility of extending carbon pricing incentives to ports that adopt green and smart operating standards under the country’s Carbon Economic Value (Nilai Ekonomi Karbon/NEK) scheme, a move that could create a new financial incentive for reducing emissions in the maritime sector while strengthening the competitiveness of national ports.
The Coordinating Ministry for Food Affairs is currently reviewing the proposal, which would allow ports implementing the Green and Smart Port concept to benefit from carbon-related incentives, similar to those already available for environmentally certified buildings. Deputy for Coordination of Food Affordability and Security Nani Hendiarti said the initiative could encourage more port operators to invest in sustainable infrastructure and low-carbon operations by providing tangible economic returns for emissions reductions.
The proposal, however, remains at the preparatory stage because the government must first establish a Measurement, Reporting and Verification (MRV) methodology for the port sector. The MRV framework will determine how emission reductions from port activities are measured, reported and independently verified before they can be recognized under the NEK mechanism. Hendiarti said the methodology will be developed jointly by relevant ministries and institutions to ensure the accounting process is transparent and credible.
The planned incentive forms part of Indonesia’s broader implementation of the NEK framework under Presidential Regulation No. 110 of 2025, which expands the country’s carbon pricing architecture. The regulation supports Indonesia’s climate commitments to reduce greenhouse gas emissions by 31.89 percent through domestic efforts and by up to 43.20 percent with international assistance by 2030, while keeping the country on track toward achieving net-zero emissions by 2060 or earlier.
The proposal was discussed during the launch of ASRI’s Green and Smart Port Initiatives (GSPI) 2026, a program that promotes environmentally sustainable and digitally integrated port management. Since its introduction in 2019, the Green and Smart Port assessment has attracted growing participation from port operators. By 2025, 41 ports had joined the assessment process, with eight ports receiving Green and Smart Port certification and awards on July 15, 2026.
Under the assessment system, environmental performance accounts for 80 percent of the overall evaluation, while smart technologies and digitalization contribute the remaining 20 percent. Environmental indicators include waste management for both ports and vessels, renewable energy utilization, mangrove restoration, energy efficiency, and broader efforts to reduce carbon emissions.
Hendiarti said the program emphasizes environmental stewardship as its core principle, requiring participating ports to improve waste handling systems, expand the use of renewable energy and undertake ecosystem restoration activities such as mangrove planting, which also contributes to coastal protection and carbon sequestration.
Deputy for Food Trade and Distribution Coordination Tatang Yuliono said linking Green and Smart Port certification with carbon incentives would likely increase participation among port operators because the program would offer direct economic benefits alongside environmental recognition.
The government is also working with state-owned survey services holding company IDSurvey to develop standards, verification systems and certification mechanisms for green ports. IDSurvey Chief Operating Officer David Sirait said the transition toward Green and Smart Ports should be viewed not only as regulatory compliance but as a long-term investment in Indonesia’s logistics competitiveness.
According to Sirait, IDSurvey and its subsidiaries, PT Sucofindo, PT Surveyor Indonesia and PT Biro Klasifikasi Indonesia, will continue supporting the initiative through assurance, inspection, verification and certification services. He said greener and more technologically advanced ports would improve logistics efficiency, lower operational costs over time through better resource management and energy efficiency, and strengthen Indonesia’s position as a regional maritime and trade hub.
The proposed inclusion of green ports in the NEK scheme would also align Indonesia’s maritime sector with international efforts to decarbonize shipping and port operations. Globally, ports are increasingly adopting shore power, renewable energy, electrified cargo-handling equipment and digital technologies to reduce emissions as shipping faces growing pressure to meet climate targets. By introducing carbon-based incentives, Indonesia hopes to accelerate similar investments while integrating its port sector into the country’s broader carbon pricing and emissions reduction strategy.
