Good News For Coal Entrepreneurs And PLTU Owners, Carbon Tax Implementation Postponed Until July 2022

JAKARTA - The government through the Ministry of Finance (Kemenkeu) finally gave official confirmation regarding the status of the implementation of the carbon tax which is planned to take effect early next month. This statement was delivered directly by the Head of the Fiscal Policy Agency (BKF) Febrio Kacaribu at the press conference of our APBN Kita this evening.

According to Febrio, the government has decided to postpone the determination of the carbon tax for the next few months.

"We see that there is room to delay the implementation of this carbon tax from April 1, 2022, to July 2022," he said through a virtual channel, Monday, March 28.

Febrio revealed that his party is still working on the best formulation and also the selection of the execution momentum which is considered the most appropriate.

"This postponement is while we are preparing more comprehensive legislation," he said.

Meanwhile, the government, called Sri Mulyani's subordinates, is currently focusing on providing basic necessities for the community ahead of Ramadan while controlling inflation.

"Our current focus is ensuring the supply of all people's needs, price stability, and also maintaining purchasing power," he said.

For information, the carbon tax regulation is one of the implementations of the Law on the Harmonization of Tax Regulations (HPP). VOI noted that this policy will be applied for the first time to PLTU entrepreneurs who are considered to have the most potential to produce massive carbon from coal combustion.

Meanwhile, the tariff itself is planned at Rp. 30 per kilogram of carbon dioxide equivalent (COe2) or its equivalent unit.