Economists Ask People To Challenge Presidential Candidates For The 2024 Election To Realize Carbon Taxes

Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira. (Photo: Theresia Agatha/VOI)

JAKARTA - Almost all countries in the world have entered the energy transition stage, which continues to be the main topic globally, including Indonesia.

In Indonesia itself, the implementation of the carbon tax will determine the development of carbon exchanges in the future and become the government's commitment to efforts to reduce carbon dioxide or CO2 emissions.

Economist and Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira said that presidential candidates (candidates) and vice presidents (cawapres) who will run in the 2024 general election (elections) must have a commitment regarding carbon taxes.

Bhima also asked the public to challenge the three presidential candidates participating in the 2024 General Election to be able to realize the carbon tax.

"Never mind taxes on fossil companies, carbon taxes alone do not go around. So, we can not in the first 100 days (after being elected) challenge the three of them to implement a carbon tax, if necessary with a higher tariff," said Bhima in Indonesia's Media Briefing Power Up: Young People's Movement to Collect Climate Commitments for Presidential Candidates, in Jakarta, Thursday, October 19.

He said that the law related to the carbon tax regulation already exists. However, the tax has not yet been implemented. This means that the technical implementation does not run or stop. According to Bhima, the reason the government has not implemented a carbon tax is due to concerns about an increase in electricity rates.

"This is baseless. Precisely when the carbon tax is implemented, the money from the carbon tax can subsidize poor households with cleaner energy," he said.

In addition to asking for the implementation of the carbon tax for the three presidential candidates, Bhima also asked them to finalize their energy transition program clearly and concretely.

In fact, it must be included in their vision and mission.

"It would be even better if their program was concrete, so they don't just talk about supporting the energy transition, but also the program is clear. So, the energy transition must be concrete," he concluded.

For your information, the Indonesian Carbon Exchange or IDX Carbon has officially been launched on the Indonesia Stock Exchange (IDX), Jakarta, on Tuesday, September 26, by President Joko Widodo (Jokowi).

The President said that the launch of the carbon market was a real contribution for Indonesia to fight the climate crisis.

As for the Tax Harmonization Law (UU HPP), carbon tax regulations are targeted to be completed in 2024.