The Indonesian government will collect carbon tax from coal-fired power plants from July 1, 2022, as a trial run to roll out the carbon tax policy on all emission-intensive sectors.
The carbon tax regulation was supposed to come online on April 1 but delayed as the government needed time to synchronize the rules and roadmap.
At the initial stage, the government will set a tax rate of Rp. 30 per kilogram of CO2, equivalent to $2.1 per tonne of emissions.
The coal-fired power sector, the No.1 emitter in the country, is chosen as the first target of the carbon tax imposition as the government is trying to roll it out to more sectors.
The gradual implementation of the carbon tax will raise the public's awareness and make them easy to accept when there is a full carbon tax implementation, Febrio Kacaribu, head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, said.
Meanwhile, the carbon tax imposed on coal power plants won't cause financial burden to them, Kacaribu said.
Indonesia is obliged to independently reduce greenhouse gas emissions by 29% unconditionally or 41% with international support by 2030.
(Writing by Alex Guo Editing by Tammy Yang)
For any questions, please contact us by firstname.lastname@example.org or +86-351-7219322.