The Ministry Of Finance Ensures That There Will Be No Tax Charges On The Carbon Exchange Starting September 2023

JAKARTA - The Ministry of Finance (Kemenkeu) stated that the implementation of carbon tax levies had not yet been carried out at the opening of the carbon exchange in September 2023.

This was conveyed by the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu. According to him, the carbon exchange mechanism is quite different from the carbon tax object itself.

"In fact, we ask that globally participate in reducing emissions in Indonesia, we open it with the carbon market," he told VOI after the agenda for an agreement with the Ministry of Foreign Affairs in Jakarta, Monday, August 14.

Sri Mulyani's subordinate emphasized that the elimination of the carbon tax levy does not mean that the government provides fiscal facilities. He called this a way opener for a bigger agenda in the future.

"So this is not a matter of incentives but instead we want the global market to participate. Therefore, we will open the carbon market first," he said.

Febrio admitted that currently his party is still reviewing the best scheme for withdrawing carbon taxes by considering the interests of all parties, both from the business sector, government, and also the community.

"If now there is no need for it (carbon tax levies). We have to first have a roadmap, what kind of industry will we have so that the economy will not be disrupted," he said.

VOI noted that the government will open the carbon exchange in September 2023. This is a mandate from Law Number 4/2023 concerning the Development and Strengthening of the Financial Sector (UP on PPSK) in line with the rapid development of carbon trading in the world and the huge potential of Indonesia.

The government has a target of reducing GRK emissions by 31.89 percent with its own efforts and 43.2 percent with the assistance of international participation by 2030 according to the Enhanced NDC 2022 document.

Meanwhile, the carbon tax was originally implemented in the second semester of 2022 before the G20 Summit in Bali. However, this implementation failed to be implemented due to economic conditions and pressure factors due to the pandemic. It is planned that the carbon tax will begin to be implemented in 2025.