At the end of 2021 the government officially introduced the Economic Value of Carbon (NEK) instrument through Presidential Regulation Number 98 of 2021 (Perpres 98/2021) concerning the Economic Value of Carbon for Achieving Nationally Determined Contribution Targets and Controlling Green House Gas (GHG) Emissions in Development National. It is hoped that the issuance of this regulation will be an important driver in achieving targets
climate change mitigation and adaptation, especially to meet Indonesia's Nationally Determined Contribution (NDC). The determination of NEK is an incentive mechanism that aims to direct various economic activities/decisions, such as consumption and investment, towards activities that are more climate friendly (OECD, 2023; World Bank, 2022). The implementation of NEK also has the potential to support sustainable economic development, so that economic growth can go hand in hand with environmental protection (ADB, 2021).

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