Sri Mulyani: Indonesia Formulating Regulations on Carbon Tax Policy
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24 August 2024 21:15 WIB
TEMPO.CO, Jakarta - Finance Minister Sri Mulyani stated on Saturday, August 24, that the Indonesian government was still in the process of drafting rules and regulations that would govern the implementation of a carbon tax to curb carbon emissions.
Speaking at the Indonesia Net-Zero Summit in Jakarta on Saturday, the State Treasurer said that the government was also investing time and effort to ensure the readiness of businesses and industries to make the carbon tax an effective policy.
Minister Sri also touched on the existing carbon market mechanism, saying that it has and will continue to play a key role in curbing emissions.
"I think it is important that we continue to use this mechanism as a tool to control emissions," she said.
However, the minister did not give any details on when the carbon tax policy will be officially implemented.
Earlier, the Coordinating Ministry for Economic Affairs revealed that the carbon tax will be implemented in two phases in accordance with the roadmap that the government is currently preparing.
"The first phase of the carbon tax roadmap will only regulate the implementation of the carbon tax in the power plant sub-sector," the ministry's Deputy III for the Development of State-Owned Enterprises, Research and Innovation, Elen Setiadi, said here on July 23.
For the second phase, he explained that the carbon tax will also be imposed on the transportation subsector, which uses fossil fuels.
"The imposition (of carbon tax) on these two sectors is expected to cover about 71 percent of emissions in the energy sector, namely 48 percent from power plants and 23 percent from transportation, or about 39 percent of Indonesia's total emissions," he noted.
The Indonesian government has taken a number of measures to promote the adoption of the green economy and achieve zero emissions by 2060, including the launch of the Indonesia Carbon Exchange (IDXCarbon) on September 26 last year.
IDXCarbon has facilitated carbon transactions with a total value of Rp36.7 billion (approximately US$2.3 million) from its inception to June 30, 2024. The value is derived from the total trading volume of 608,000 metric tons of carbon dioxide (CO2) equivalent.
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