Ministry reiterates carbon tax necessity for sustainable economy

14-Oct-2021 Intellasia | AntaraNews | 5:53 AM Print This Post

The finance ministry’s Fiscal Policy Agency accentuated that carbon tax implementation and carbon market development enacted by the Tax Regulation Harmonisation Law was a milestone to achieve sustainable national development.

“This also proves Indonesia’s commitment to tackling climate change among members of the global community,” Fiscal Policy Agency Head Febrio Kacaribu stated in Jakarta on Wednesday.

Indonesia will have the first-mover advantage among developing countries by being one of the earlier nations to enact the carbon tax, thereby enabling it to play a significant role in the global action against climate change and promote sustainable development, Kacaribu emphasized.

The carbon tax will make Indonesia an attractive investment destination for low-carbon enterprises in the energy, transportation, and manufacturing sectors, he remarked.

“The implementation of carbon tax also placed Indonesia in equal standing with developed countries, such as the United Kingdom, Japan, and Singapore, where the same carbon tax had been implemented earlier,” Kacaribu stated.

Indonesia, classified as among the more vulnerable countries affected by climate change, ratified the Paris Agreement and had declared the Nationally Determined Contributions (NDC) pledges made by the signatory country on climate change prevention measures in 2016, he noted.

The Indonesian government aims to achieve a zero-emission level by 2060 or earlier, the fiscal policy agency head noted.

The Indonesian government has also committed to reducing greenhouse gases by 29 percent based on its own ability and 41 percent through international support in 2030, with the main priority for greenhouse gas reductions aimed at the forestry, energy, and transportation sectors that have contributed 97 percent to the emission reduction rate in the country, Kacaribu stated.


Category: Indonesia

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