Minister Of Finance Sri Mulyani: The Implementation Of Carbon Taxes Is Carried Out Gradually And Carefully

Minister of Finance, Sri Mulyani Indrawati. (Photo: Doc. Antara)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani emphasized that the implementation of the carbon tax is carried out in stages and carefully, so that the positive impacts can be taken but while still paying attention to the negative impacts of each instrument.

"That way, the Indonesian economy is able to continue in terms of growth, stability, but is also able to carry out transformation," Sri Mulyani said at the Green Economy Forum 2023 event, quoted from Antara, Tuesday, June 6.

He hopes that the carbon price scheme, including the carbon tax, will be able to develop an innovative financing mechanism, namely how the market reacts by the implementation of the carbon market.

Therefore, the Government of Indonesia also continues to innovate to accelerate, build, and develop markets so that economic actors are increasingly known, more and more able to be managed in a transparent and credible manner, and more able to provide market signals to economic actors to continue to participate.

To support this, the government formed several instruments and institutions, one of which was the Environmental Fund Management Agency (BPDLH), a special mission vehicle (SMV) which was jointly managed between the Ministry of Finance (Kemenkeu) and the Ministry of Environment and Forestry (KLHK).

The institution was founded with the aim of managing and introducing a carbon market in Indonesia and was eventually linked to the world's carbon market.

In addition, continued Sri Mulyani, the government has also formed the SDG Indonesia One platform, which is managed by one of the SMVs under the Ministry of Finance, namely PT Sarana Multi Infrastruktur (SMI).

"This platform is expected to be able to become a bridge, not only to communicate but to collaborate, especially in financing mobilization for green transformation," he said.

Not only that, continued the Minister of Finance, Indonesia has also formed an Investment Management Institution called the Indonesia Investment Authority (INA) which is an institutional innovation created to be able to create an impact in the form of investment, including investment in the green sector.