Investor Presentaiton

The legal basis for the carbon tax has been established, while derivative regulations are being drafted Law no. 7/2021 on the Harmonization of Tax Regulations - Article 13 Key Provisions: • • • • Imposition: imposed on carbon emissions that harm the environment. Directions for carbon tax imposition: pay attention to the carbon market roadmap and/or the carbon tax roadmap that includes a carbon emission reduction strategy, priority sector targets, alignment with new and renewable energy development and alignment between various other policies. The principle of carbon tax: the principle of just and affordability by considering the business climate and small communities. The carbon tax rate is set higher or equal to the carbon price in the carbon market with a minimum rate of IDR 30.00 per kilogram of carbon dioxide equivalent (CO2e). The utilization of state revenues from the Carbon Tax is carried out through the State Budget mechanism. It can be used, among others, to control climate change, provide social assistance to poor households affected by carbon taxes, subsidize renewable energy, and others. Taxpayers participating in carbon emission trading can be granted a carbon tax deduction. Enforcement of the carbon tax: effective on April 1, 2022, which was first imposed on an agency operating in the coal-fired power plant sector with a cap and tax scheme in line with the implementation of the carbon market, which has already been implemented starting in the coal- fired power plant sector. Presidential Regulation no. 98/2021 concerning the NEK Implementation - Article 58 Key Provisions: • • Carbon levies are defined as state levies both at the central and local levels, based on carbon content and/or potential carbon emissions and/or total carbon emissions and/or performance of Mitigation Actions. Furthermore, the arrangement for its implementation is carried out in accordance with the provisions of the laws. Thus, carbon levies can be in the form of existing state levies (e.g. Motor Vehicle Tax, Fuel Tax, PPnBM) and other levies that will be applied (e.g. the imposition of a Carbon Tax). Implementing Regulations being Developed: 1. MoF Reg of Carbon Tax Tariff and imposition basis 2. MoF Reg of Carbon Tax Imposition Procedures and Mechanisms 3. GR of Carbon Tax Roadmap 138

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