Ministry Of Finance Says Carbon Tax Encourages Changes In People's Behavior

JAKARTA - The Ministry of Finance (Kemenkeu) stated that one of the goals of the carbon tax is to encourage changes in people's behavior towards reducing carbon emissions.

Head of the Financial Sector Policy Center of the Ministry of Finance (Kemenkeu), Adi Budiarso said, the Government is still finalizing regulations regarding carbon taxes. The government considers boosting the carbon trading mechanism, readiness to achieve the commitment of the National Determined Contribution (NDC), as well as industrial readiness in drafting carbon tax regulations.

"The carbon tax implementation is not only for acceptance, but to encourage a change in behavior mechanism from our society," Adi said, quoting Antara, Wednesday, October 11.

Based on the Tax Harmonization Law (UU HPP), carbon tax regulations are targeted to be completed in 2024.

"In the HPP piloting Law, it is targeted until 2024, then we will see more developments," said Adi.

The carbon tax in the HPP Law regulates the imposition of taxes for each excess carbon emissions issued by business entities from the standards set in their sector.

On a separate occasion, Director of Potential, Compliance, and Acceptance of the Directorate General of Taxes (DJP) Ihsan Priyawigawawa said that the DGT together with the Fiscal Policy Agency (BKF) are currently working on the completion of carbon tax regulations.

Ihsan said that the preparation of a carbon tax must be done carefully. In that context, the government will pay attention to all aspects seen in the carbon tax policy.

On the other hand, the Indonesian Carbon Exchange or IDX Carbon has been officially launched on the Indonesia Stock Exchange (IDX), Jakarta, Tuesday (26/9), by President Joko Widodo.

The President said the launch of the carbon market was a real contribution for Indonesia to fight the climate crisis.

IDXCarbon provides a trade system that is transparent, orderly, reasonable, and efficient in accordance with Financial Services Authority Regulation (POJK) Number 14 of 2023 concerning Carbon Trading through the Carbon Exchange.

There are four IDX Carbon trading mechanisms, including Auction, Regular Trading, Negotiated Trading, and Marketplace.