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fabrikasimf work policies based on productivity and output, incentives for
To address these challenges HIMKI is advocating flexible

companies investing in workforce training and technology and
wage systems that incorporate performance-based incentives.
The Association also urged the government to strengthen
workforce skills development programmes that are better

aligned with industry demands.
Abdul Sobur added that the effectiveness of labour policies
at the implementation stage is often influenced by public
The government has signalled its intention to introduce communication and industrial relations dynamics on the ground.
carbon pricing beginning in 2026, supported by the forthcoming
Climate Change Bill (RUUPIN) that will provide the legal and Indonesia opens carbon market to communities and
regulatory foundation for the mechanism. businesses
Malaysia’s carbon tax policy is progressing through a Indonesia has introduced a new regulation opening its forestry
staged legislative process. The government first signalled carbon market to communities and private sector players in

the introduction of carbon pricing during Budget 2025, with an effort to accelerate emissions trading and maximise the
enabling legislation expected to be introduced under the economic value of its tropical forests.
Climate Change Bill. Through Forestry Ministry Regulation (Permenhut) No.
Current policy discussions indicate that the carbon tax 6/2026, companies are now allowed to offset greenhouse
could take effect in 2026 starting with iron, steel and energy gas emissions by investing in forest conservation, sustainable
sectors. forest management and ecosystem protection.
Forestry Minister, Raja Juli Antoni, said the policy marks

INDONESIA a shift toward a more transparent and inclusive carbon
Calls for productivity-driven labour policies to market after years of slow progress. The regulation is also
strengthen manufacturing competitiveness intended to ensure that local communities benefit directly
The Indonesian Furniture Industry and Craft Association from conservation efforts.
(HIMKI) has called on the government to adopt productivity- The Minister emphasised that Indonesia’s new forestry
driven labour policies to strengthen the competitiveness carbon trading regulation is designed to ensure greater
of the manufacturing sector amid growing geopolitical and transparency, accountability and trust in the carbon market.
economic pressures. Through Ministerial Regulation No. 6/2026, the government
HIMKI Chairman Abdul Sobur emphasised that, while aims to establish a clearer framework for businesses, local

labour protection remains a fundamental principle in industrial communities and international partners involved in forestry-
development, it must be balanced with the need to improve sector carbon trading.
efficiency, flexibility and global competitiveness. The minister highlighted that maintaining integrity in carbon
He noted that Indonesia’s manufacturing sector is facing trading is a top priority.
challenges, not only from global market conditions but also
from domestic issues such as low labour productivity and Industry welcomes new carbon trading regulation
rising production costs. Industry stakeholders have welcomed Indonesia’s new forestry