2022 State Budget and Fiscal Incentives Presentation
The carbon tax roadmap is designed for a just and affordable principle
1
•
2021:
•
Enactment of the
Presidential Regulation on
Carbon Economic Value
Enactment of the HPP Law,
with one of its clauses being
a carbon tax
• Development of a technical
mechanism for Carbon Tax
and Carbon Exchange
• Piloting of carbon trading in
the power sector by the
Ministry of Energy and
Mineral Resources with an
average price of IDR
•
30,000/tCO2e
Evaluation of the
implementation of carbon
trading piloting in the power
sector by the Ministry of
Energy and Mineral
Resources
2
2022
.
•
Synchronization of Cap & Trade
and Cap & Tax of the Electricity
Sub Sector
Determination of the cap for the
coal power generation sector by
the Ministry of Energy and
Mineral Resources
Limited application of carbon tax
(cap & tax) to coal-fired power
plants at a rate of
IDR30,000/tCO2e
Setting up a carbon trading
support MRV System (SRN).
Preparation of carbon trading
technical regulations (KLHK)
2025:
3
Full implementation of carbon
trading via carbon exchange
Expansion of the Cap & Trade
and Cap & Tax sectors
gradually, in accordance with
the readiness of the sectors.
The carbon tax rate will be evaluated periodically and set higher or equal to the carbon price in
the carbon market
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