Govt Finishes Carbon Tax Roadmap

The government has completed preparing a carbon tax road map, with the plan for its implementation on coal-fired power plants (PLTU) on July 1, 2022. "The carbon tax road map preparation has been completed, but we want to consult with the Finance Commission of the House of Representatives [DPR] first. We hope that its implementation will not be delayed," the Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, said Monday.

The carbon tax policy is inseparable from the agreement between the government and the House. The carbon tax imposition will be no different from what is currently applied in carbon trading. As a result, the policy will not impact PLTU owners' financial condition. Moreover, the carbon tax implementation to support carbon trading will be more effective. "Therefore, the carbon tax rate at PLTU is US$2 per ton; it is no different from what is currently running on the carbon market. Will it have an impact on their financial condition? Of course not, because they have already done the US$2 in the carbon market," he said.