Coal-Fired Power Plants Must Pay Carbon Tax Next Year

Summary

The government will impose a Rp 30 per kilogram of carbon dioxide equivalent (CO2e) tax next year, as contained in the Tax Regulations Harmonization (HPP) Law. In the early stages, the carbon tax will target coal-fired power plants (PLTU). Head of the Fiscal Policy Agency Febrio Kacaribu said that Indonesia is the first developing country to move the carbon tax in the world.

The policy is proof of the government's commitment to making Indonesia equal to developed countries. "The carbon tax makes Indonesia equal with developed countries that have implemented carbon tax policies, including the UK, Japan, and Singapore," Febrio said in a written statement Wednesday.

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