Energy Ministry Hints at Enacting the Postponed Carbon Trade

TEMPO.CO, Jakarta - The Energy and Mineral Resources Ministry (ESDM) in the Indonesia Sustainable Energy Week in Jakarta on Monday hinted at commencing its carbon trade program, which was postponed since 2020. 

The ESDM Ministry secretary-general Rida Mulyana assured event attendees that the implementation of the carbon exchange can take place immediately to support clean energy and Indonesia’s 2060 net zero emission (NZE) goal. 

Rida said carbon trading could be carried out in various power plants that will be built in the near future under the condition that Indonesia and the global economy recover quickly. 

"We have been doing this since 2020 through testing several power plants and maybe in the near future, if the economy improves, this carbon will be implemented (implemented) immediately," Rida said in Jakarta, Monday, October 10.

The government has prepared the regulatory scheme, Rida explained. However, the implementation of carbon trading requires the support of the State Budget (APBN), especially with regard to pricing.

"Because according to regulations, everything is ready, only in terms of the strength of the state budget, because all of PLN is passed through to the state budget, this must be calculated, including the carbon price and so on," said Rida.

Initially, the implementation of carbon trade – including the imposition of a carbon tax – was targeted to be implemented on April 1, 2022, with a ‘cap and trade and tax scheme.’ However, due to inadequate infrastructure, the implementation of the policy was postponed. The cap and trade scheme applies to coal-fired power plants (PLTU) with a capacity of 25-100 megawatts.

ARRIJAL RACHMAN

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