The Government Is Still Reviewing The Implementation Of Carbon Taxes

JAKARTA - Director of Tax Strategy of the Ministry of Finance Pande Putu Oka Kusumawardani explained that the implementation of the carbon tax is still at the development stage taking into account the readiness of the carbon ecosystem and market in Indonesia.

"We are still paying attention to the carbon pricing ecosystem, then also the carbon market. Right, it is still in an effort to develop. So that we also pay attention to how our economic condition will be in the future," he told the media crew, quoted Thursday, July 24.

He added that currently the government is pushing for various initiatives to build a solid carbon ecosystem, as part of the transition to green energy.

Pande conveyed that related to the implementation target, it refers to the roadmap that has been prepared to ensure alignment with existing developments and it will adjust its implementation time to its needs and readiness.

"Yes, what is more important is how we build a strong ecosystem for this transition to green energy and tools that have been introduced for the carbon market, we encourage it first," he said.

Pande emphasized that until now all processes are running in parallel, both in the preparation of regulations and development of supporting infrastructure.

"But the implementation will certainly pay attention to developments, the ecosystem needed earlier that must be considered," he concluded.

Previously, Deputy Minister of Environment Diaz Hendropriyono, revealed that until now his party had not been involved in technical discussions regarding the carbon tax with the Ministry of Finance.

He said that the Ministry of Finance was still evaluating the urgency of implementing the policy.

"The Ministry of Finance seems to still assess whether this carbon tax should be implemented at this time, or waiting for more trade (carbon) later. I don't know what the considerations are," he told reporters, Tuesday, April 22.

Diaz menambahkan, pihaknya telah mendorong agar Kemenkeu segera menerbitkan regulasi terkait pajak karbon.

Meski begitu, pihaknya hanya bisa menunggu keputusan dari Kementerian Keuangan terkait regulasi tersebut.

“Menunggu saja dan melihat, intinya kita ingin berdiskusi lebih lanjut dengan Kementerian Keuangan terkait pajak karbon apakah perlu dilakukan sekarang atau nanti, atau ada usulan lain. Karena itu adalah keuangan dari Kementerian Keuangan,” ucapnya.

Diaz added that his party had encouraged the Ministry of Finance to immediately issue regulations related to the carbon tax.

Even so, his party can only wait for a decision from the Ministry of Finance regarding the regulation.

"Just wait and see, basically we want to discuss further with the Ministry of Finance regarding the carbon tax whether it needs to be done now or later, or there are other proposals. Because it is finance from the Ministry of Finance," he said.