Indonesia's COVID-19 Vaccination and Economic Resilience Strategy
Principles of Rate Arrangement and Basis for Carbon Tax Imposition
1.
2.
3.
4.
Carbon Tax Implementation
The Carbon Tax will be imposed for the first time on entities operating in the coal-fired power plant sector
with a tax mechanism based on emission limits.
The implementation of the carbon tax was decided to be postponed to July 1, 2022 from the initial plan of
April 1, 2022, taking into account the Indonesia conditions The Government focused on ensuring the
availability and stabilization of energy and food prices, ensuring the acceleration of the national economic
recovery after the pandemic, as well as to harmonize with efforts to improve various technical regulations for
implementing carbon market schemes.
Technical regulations related to the carbon tax need to be implemented immediately to support the
implementation of the carbon market that has been started in the coal-fired power plant sector.
The Ministry of Finance is currently preparing a Government Regulation on the Carbon Tax Roadmap which
will be aligned with the Carbon Market Roadmap. The Government Regulation on Carbon Tax Roadmap will
be issued in 2022.This is conveyed to comply with the provisions of the HPP Law, that the determination of
the Draft Minister of Finance Regulation (RPMK) on Tariffs and Basis for Imposition of Carbon Taxes requires
prior consultation with the parliament.
Tax Base
Excess
Carbon Emission
within 1 tax
year above the
emission technical
approval issued for the
emitting unit
2022
Tax Rate
IDR30/kg
CO2e
2023
1.2 x average
carbon price*
*in the previous tax
year's carbon market
or IDR30/kg CO2
(whichever is higher)
Carbon Market Definition
"The place where carbon trading takes place
which is integrated in the National Registry
System for Climate Change Control
(SRN-PPI)1
Refers to carbon trading that is already
running and determined by the relevant
minister or carried out through the PPI sub-
SRN which is registered and registered at the
PPI SRN1
Stages of Application in
Coal-fired Power Plants
2022
limited to the State
Electricity Company
(PLN) and IPP*
generating units with a
capacity of
> 100 MW
2023
Coal-Fire
Power Plant
with a
capacity of
≥ 25MW
Source: Ministry of Finance
¹If carbon trading has not been integrated into the SRN PPI
156View entire presentation