Carbon Tax Implementation Continues to Wait for Momentum

Thursday, 15 September 2022

Carbon Tax Implementation Continues to Wait for Momentum

JAKARTA. The government is still waiting for the right momentum to implement the carbon tax policy. It is recorded that the policy has been postponed twice.

The policy regulated in Law (UU) Number 7 of 2021 on the Harmonization of Tax Regulations (HPP), supposedly took effect from 1 April 2022, but failed to do so and was postponed until q July 2022.

However, until now the government has not implemented this policy.

Citing, the government still needs to calibrate the implementation of the carbon tax, given that Indonesia's economic condition is still fragile.

Confronted with the Covid-19 pandemic since early 2020, Indonesia is currently facing another challenge, namely the food and energy crisis which has soared the prices of basic necessities and energy.

Need Preparation

While citing, the government will not rush in implementing a carbon tax policy. This is because the ultimate goal of the policy is to reduce carbon emissions or net zero emissions (NZE).

To achieve this goal, complete preparation and infrastructure are needed.

The implementation of the carbon tax is planned to be carried out in stages using a cap and tax scheme. This means that the implementation of the carbon tax will be aligned with carbon trading to create a sustainable carbon market.

For the first stage, the imposition of a carbon tax will target coal-fired power plants (PLTU) at a rate of IDR 30,000 per ton of CO2e.


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