Indonesia's Carbon Tax: Waiting for the Right Time

carbon emission
Summary

  • The Indonesian government has postponed its carbon tax implementation twice.
  • The scheme should have been imposed on April 1, 2022, per the latest Harmonized Tax Law mandate.
  • Carbon taxes will increase PLN's electricity supply cost, expectedly raising the inflation rate as a result.
  • Indonesia's inflation rate has exceeded the projection in June, even though the policy has yet to be implemented.

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