Studying The Impact Of Carbon On Electricity BPP, Ministry Of Energy And Mineral Resources: Only Slightly Increase

JAKARTA - The implementation of the Carbon Tax on steam power plants (PLTU) on April 1 will have an impact on the cost of providing electricity (BPP).

The Director General of Electricity at the Ministry of Energy and Mineral Resources (ESDM), Rida Mulyana, ensures that it will not have a major impact on the increase in BPP.

"Of course there is an effect, but only a slight increase, not big," said Rida in a virtual press conference in Jakarta, Tuesday, January 18.

Rida detailed, with the carbon tax set at 2 US dollars per tonne (Rp30/kg CO2e), the increase in BPP will only be Rp0.58 per kWh (kilowatt-hour).

"The daily basis is 1,400 kWh, with the addition of around 0.58 small," said Rida.

Rida continued, this policy will also be implemented in stages after the initial trial. According to the plan, the government will apply a tax for steam power plants with a capacity of under 100 megawatts by 2023. The economic value of carbon is carried out by means of a cap and trade and cap and tax mechanism.

This policy was previously stated in Article 13 of the Tax Harmonization Law which was ratified by the 2021 People's Representative Council (DPR) which stipulates the amount of the carbon tax rate is at least Rp. 30.00 per kilogram.

The carbon tax rate is set higher than or equal to the carbon market price rate per kilogram of carbon dioxide equivalent (CO2e) or its equivalent unit. The government claims that the imposition of a carbon tax will prioritize the principles of fairness and affordability.