Sarcouncil Journal of Economics and Business Management

Abstract: This study aims to analyze the accounting treatment of carbon credits in forestry companies in Indonesia, particularly the conceptual debate over whether carbon credits should be recognized as green revenue or as an environmental burden in the financial statements. The growth of Indonesia's carbon market through IDXCarbon and the issuance of recent regulations such as Ministry of Forestry Regulation No. 6 of 2026 have heightened the urgency of establishing clear accounting standards for forestry companies. This study employs a qualitative method with a conceptual study approach and document content analysis, drawing on carbon tax regulations, accounting standards (PSAK), the financial statements of forestry companies listed on the IDX, and international literature on carbon accounting. The analysis was conducted using the theoretical frameworks of environmental accounting and legitimacy theory. The results show that carbon credits in forestry companies can serve as green revenue when a company is in an emission-surplus position (generating tradable Greenhouse Gas Emission Reduction Certificates / SPE-GRK), but conversely become an environmental burden when a company is in an emission-deficit position and is obliged to purchase carbon credits. The study also identifies a significant regulatory gap: as of 2026, Indonesia does not yet have a specific PSAK on carbon accounting, so companies rely on varied interpretations of PSAK 19, PSAK 57, PSAK 72, and PSAK 68. The study recommends the issuance of a dedicated PSAK or ISAK on carbon accounting, harmonization with IFRS S2 and the IASB Carbon Markets project, and a mandatory requirement for full disclosure of carbon credits in the financial statements of Indonesian forestry companies.