Road Panjang Monetization Carbon: September 26 Still Tax Free

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA The synergy between the government and the Financial Services Authority (OJK) to monetize environmental potential into added value economic activities will soon be realized through the launch of the carbon exchange on September 26.

Dalam agenda strategis itu, OJK akan berperan sebagai regulator yang menetapkan aturan berlaku sekaligus menjadi instansi yang melindungi dan mengawasi perdagangan carbon di Indonesia.

"The initial carbon exchange launch plan will be carried out on September 26," said OJK Board of Commissioners Chairman Mahendra Siregar as quoted by the editors on Sunday, September 24.

According to Mahendra, in order to strengthen the ecosystem in reducing carbon emissions in Indonesia, efforts are needed with various parties, including by local governments that have many sources of carbon-reducing emissions.

"Each province can contribute to reducing carbon emissions which can be realized directly with the support of biocarbon funds," he said.

Tax-free

Separately, the Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu said that the implementation of the carbon tax collection had not yet been carried out at the time of the opening of the carbon exchange this September. 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 some time ago in Jakarta.

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.

Need large funds

Furthermore, Febrio revealed that funding of US$281.23 billion or Rp4 quadrillion is needed to meet the target of 29 percent reduction in carbon emissions in Indonesia by 2030.

"Because climate change has its effect worldwide, so it requires commitment," he added.

It is stated that the most investments to reduce carbon are the energy sector, with a transition capital of US$ 245.99 billion. "So that the energy transition can be fair and even," he said.

Canceled At G20 Bali

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.

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.