During the Indonesia Net-Zero Summit in Jakarta on Saturday, the state treasurer remarked that the government is also investing time and efforts to ensure the preparedness of businesses and industries in order to make carbon tax an effective policy.
Indrawati then drew attention to the existing carbon market mechanism, saying that it does and will continue to play a pivotal role in putting a lid on emissions.
"I believe it is vital that we continue to make the most of this mechanism as an instrument for controlling emissions," she noted.
The minister, however, did not divulge any details on when the carbon tax policy will be rolled out officially.
Earlier, the Coordinating Ministry for Economic Affairs revealed that the carbon tax would be implemented in two phases in accordance with the road map that the government is currently preparing.
"The initial phase of the carbon tax road map is proposed to only regulate the implementation of the carbon tax in the power plant subsector," the ministry's Deputy III for the Development of State-Owned Enterprises, Research, and Innovation, Elen Setiadi, remarked here on July 23.
For the second phase, he explained that the carbon tax will also be imposed on the transportation sub-sector that uses fossil fuels.
"The imposition (of carbon tax) on these two sectors is expected to cover around 71 percent of emissions in the energy sector, namely 48 percent from power plants and 23 percent from transportation or around 39 percent of Indonesia's total emissions," he remarked.
The Indonesian government has taken a range of measures to promote the adoption of the green economy and achieve zero emissions by 2060, including by launching the Indonesia Carbon Exchange (IDXCarbon) on September 26 last year.
IDXCarbon has facilitated carbon transactions, with a total value of Rp36.7 billion (around US$2.3 million), during the period from its inception to June 30, 2024. The value is derived from the total trade volume of 608 thousand tons of carbon dioxide (CO2) equivalent.
Related news: Carbon tax implementation to be divided into two phases: Government
Related news: Indonesian govt still maturing carbon tax regulation: Minister
Related news: Carbon tax to give businesses alternative to reduce emissions: MoF
Translator: Muhammad H, Tegar Nurfitra
Editor: Azis Kurmala
Copyright © ANTARA 2024
