Director General Of Gatrik Ensures Carbon Tax Applies April 1, 2022

JAKARTA - The government's plan to set a carbon tax (carbon tax) as support for efforts to combat climate change and the goal of achieving carbon neutral or net zero carbon by 2060 is confirmed to be implemented on April 1.

The Director General of Electricity at the Ministry of Energy and Mineral Resources (ESDM) Rida Mulyana ensured that the preparation process has reached 90 percent and will continue on April 1.

"The exact date is April 1. But we can't give the amount of the stamp, considering that there is no permit from the minister (ESDM)," Rida said at a press conference, Tuesday, January 18.

In contrast to other countries that impose a carbon tax only by combining tax and stamp or stamp and trade, Indonesia will combine these three things.

In addition, the government will also apply this policy not only to fossil fuels but also to gas fuels and other industries.

"We are still in the process, if there are other industries that want to apply, they can use us as a template so that we can go towards Net Zero Emission (NZE)," concluded Rida.

The discussion is coordinated with the Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marinves). The government is currently discussing the institutional mechanism to establish a carbon exchange.

In addition, a carbon tax is imposed in order to control greenhouse gas emissions to support the achievement of Indonesia's Nationaly Determined Contribution (NDC).

The implementation of the carbon tax was ratified through Law (UU) Number 7 of 2021 concerning Harmonization of Tax Regulations. The carbon tax will be set in stages with priority on economic recovery.

For the initial stage on April 1, 2022, a carbon tax will begin to be imposed on the coal-fired power plant sector.