JakartaPost-Oct 1

Indonesia is set to introduce a new carbon tax, becoming the latest country to introduce the measure as part of its commitment to curb greenhouse gas emissions over the next decade. The country would impose a minimum of Rp 30 tax per kilogram of carbon dioxide equivalent (CO2e) emitted, according to a final draft of a tax reform bill reviewed by the Globe on Friday. The tariff was equal to around $2.1 per metric ton CO2e, making it one of the lowest tariffs among countries with similar measures.

That was also 60 percent lower than the government’s original carbon tax proposal of $5.2 per metric tons CO2e. When first introducing the bill to the House of Representatives last June, the government expected a high carbon tax to encourage reductions in greenhouse gas emissions and actions against climate change. However, the Indonesian Chamber of Commerce and Industry (Kadin), the country’s largest business lobby group, argued at the time that the new tax would burden businesses still struggling to recover from the pandemic. Read more at: https://jakartaglobe.id/business/indonesia-is-set-to-introduce-21-per-ton-of-co2e-carbon-tax