Coordinating Minister Airlangga Reveals Carbon Tax Rules In Indonesia Have Been Prepared

Coordinating Minister for Economic Affairs Airlangga Hartarto revealed that the rules for imposing a carbon tax have been prepared.

However, Airlangga has not been able to confirm whether the implementation of the carbon tax will be implemented in the current government or the elected President Prabowo Subianto.

"Yes, we'll see (the implementation) later. That's on the Carbon Exchange. Uda has been prepared (the rules). Just check there," Airlangga told the media crew in Jakarta, Wednesday, July 24.

Previously, Deputy for BUMN Business Development, Research and Innovation of the Coordinating Ministry for the Economy, Elen Setiadi, said that the discussion of the Draft Government Regulation (RPP) on the Carbon Tax Roadmap was still ongoing.

Elen said that based on the RPP, the Carbon Tax Roadmap is proposed for the first time to only regulate the application of a carbon tax for power generation sub-sectors or in this case, steam power plants (PLTU).

"In the initial stage of the RPP, the carbon tax roadmap is proposed to be sufficient to regulate the application of a carbon tax for power generation sub-sectors to support and adapt to the existing carbon trading roadmap," Elen said during the Carbon Trading and Exchange Webinar, Tuesday, July 23.

Currently, there are 146 Steam Power Plants (PLTU) participating in the carbon sub-sector trading of power plants this year.

Meanwhile, in the second stage, the implementation of the carbon tax will be coupled with the imposition of fossil fuels used by the transportation sector.

Elen conveyed that the imposition of these two sectors is expected to cover around 71 percent of the total emissions from the energy sector, namely 48 percent from the power plant and 23 percent from transportation or 47 percent of emissions in Indonesia apart from the FOLU (Forest and Other Land Use).