Indonesia to Impose Carbon Tax on Coal Power Plants Starting July: Airlangga

20 June 2022 15:57 WIB

Coordinating Minister for the Economy Airlangga Hartarto tries the Toyota Kijang Innova BEV at the Indonesia International Motor Show exhibition at JiExpo Kemayoran, Jakarta, Thursday, March 31, 2022. Tempo/Tony Hartawan

TEMPO.CO, JakartaCoordinating Minister for the Economy Airlangga Hartarto said Indonesia planned to impose a cap and trade tax and offset or carbon tax on coal-fired power plants starting July 2022. Coal-fired power plants operating inefficiently and producing emissions higher than the upper cap will be subject to additional costs.

“Indonesia is attempting to open up innovation by applying a cap and trade tax in the power generation sector which we cannot deny that there are more efficient or more effective mechanisms [to cut emissions],” said Airlangga in a virtual discussion on Monday, June 20, 2022.

He also said the carbon tax is aimed at changing people's behavior to switch to green economic activities. “While encouraging low-carbon development, technological innovation, and investments that are more efficient, low-carbon, and environmentally-friendly,” he emphasized.

The tax was initially planned to be implemented last April. However, the government delayed its implementation for three months as it is still preparing the technical regulations.

The tax amount is regulated in Article 13 of the Law on Harmonization of Tax Regulations (UU HPP), in which the government and the House of Representatives (DPR) agreed on the rate of Rp30.000 per kilogram, higher than or equal to the carbon price rate on the carbon market.

From 2022 to 2024, a carbon tax will be applied to the power generation sector or coal-fired power plants. In 2025, it will be implemented fully and expanded to other industries in accordance with their readiness.

MUHAMMAD HENDARTYO

Click here to get the latest news updates from Tempo on Google News 



Jakarta to Install 14 More Air Quality Sensors

18 jam lalu

Jakarta to Install 14 More Air Quality Sensors

The Jakarta Environmental Agency planned to install 14 more units of air quality sensors across the capital city to increase the validity of AQI.


Anies Baswedan Inaugurates 4 Net Zero Schools 2022

6 hari lalu

Anies Baswedan Inaugurates 4 Net Zero Schools 2022

Jakarta Governor Anies Baswedan inaugurates four Net Zero Schools 2022 at SDN Ragunan 08 state elementary school in South Jakarta today, Sept. 28.


Threats of Sinking; Pari Islanders Sue Cement Giant Holcim

13 hari lalu

Threats of Sinking; Pari Islanders Sue Cement Giant Holcim

Pari Island Residents filed a lawsuit against cement giant PT Holcim in Switzerland over its contribution to climate change that threatens the island.


Transjakarta Meets Minister Asking Support for Electric Bus Policy

32 hari lalu

Transjakarta Meets Minister Asking Support for Electric Bus Policy

Jakarta-owned bus operator Transjakarta met with Coordinating Minister for the Economy Airlangga Hartarto today, September 02, 2022.


Indonesia's Fuel Prices Cheaper than Southeast Asian Countries; Here's the Fact

33 hari lalu

Indonesia's Fuel Prices Cheaper than Southeast Asian Countries; Here's the Fact

Minister Airlangga Hartarto claims that fuel prices in Indonesia are relatively cheaper than in some Southeast Asia countries. Check out the fact.


Indonesia's Car Exports Hampered by Strict Euro 5 Rules

39 hari lalu

Indonesia's Car Exports Hampered by Strict Euro 5 Rules

KPBB said Indonesia will face difficulties exporting cars due to the strict Euro 5 emission adopted by other countries.


Budget of MRT Jakarta Phase 2 Project Swells to Rp26 Trillion

40 hari lalu

Budget of MRT Jakarta Phase 2 Project Swells to Rp26 Trillion

Coordinating Minister Airlangga Hartarto said the budget of the MRT Jakarta phase 2 construction project had swelled to Rp26 trillion.


Coal Association Claims Coal Prices to Soar

41 hari lalu

Coal Association Claims Coal Prices to Soar

Aspebindo predicts prices of coal in the international market will remain high due to high demands meeting low supply.


Australia Plans Fuel Efficiency Standards to Boost Electric Car Supply

46 hari lalu

Australia Plans Fuel Efficiency Standards to Boost Electric Car Supply

The Australian government will seek to introduce vehicle fuel efficiency standards to help increase the supply of electric cars.


Fixing Jakarta's Commuter Pollution Problem

52 hari lalu

Fixing Jakarta's Commuter Pollution Problem

Jakarta is well known for its smog. With over 10 million people, health costs due to air pollution were estimated at Rp38.5 billion in 2010.