Deputy Minister of Finance (Wamenkeu) Suahasil Nazara said the Law on Harmonization of Tax Regulations opened up space for Indonesia to immediately implement a carbon tax.
"We make the carbon tax an instrument so that the carbon market can run, so that the carbon market instruments can run. So what? The setting that we want to build is that the business world should have options," he said in a written statement on Wednesday, September 13.
According to Suahasil, the option in question is that the business world can choose to reduce emissions by buying emission reductions in the carbon market or paying taxes to the government.
He said, the carbon tax became a tool for the fulfillment of the Nationally Determined Contribution by reducing gas emissions by 31.89 percent with its own efforts and up to 43.20 percent with international cooperation in 2023.
"So when will the carbon tax be applied? We will do a carbon tax in line with the roadmap of our carbon market. Later if the carbon tax is not established, then people don't want to buy an emission reduction certificate in the carbon tax, I say this, our emission reduction certificate in the carbon tax later we will make sure that every sector should understand our sector's targets," he explained.
Suahasil added that emission reduction certificates will be traded on carbon exchanges. Not only offered to the Indonesian market as well as to foreign parties.
"So we offer, we should offer our liquidity, reducing carbon emissions to the world. So we should not only be offered to list overseas. We also want to find buyers from abroad. Please look for it in our market, "concluded Deputy Minister of Finance Suahasil Nazara.
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The carbon tax was originally implemented in the second semester of 2022 before the G20 Summit in Bali.
However, this implementation was not implemented because it considered economic conditions and pressure factors due to the pandemic.
It is planned that the carbon tax will begin to be implemented in 2025.
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