Govt Still Undecided on Carbon Tax Mechanism

The Environment and Forestry Minister, Siti Nurbaya, revealed that the government was still looking for the most suitable carbon tax mechanism, expectedly regulated through an upcoming policy on the economic value of carbon. "The carbon tax is in the plan. We are still exercising, whether to apply it on commodities that contain a lot of carbon or calculate the emissions produced," she revealed in a working meeting with Commission VII of the House of Representatives (DPR), overseeing energy affairs on Monday (6/14).

Siti also explained that the government was still studying the carbon economy, such as carbon trading and results-based payments. Carbon trading is a carbon transaction mechanism between businesses and activities emitting carbon above the threshold. Meanwhile, results-based payments are financial incentives earned by developing countries after thorough verification and certification to prove their achievement in reducing greenhouse gas emissions. "We are open to other mechanisms. We have not decided yet, because the technology keeps developing, creating crypto patterns, Bitcoin patterns, and others. We will wait and see," she continued.