ESDM Encourages Monetization Through Carbon Tax

The Ministry of Energy and Mineral Resources (ESDM) has been in communication with relevant Ministries/Agencies regarding the cross-sectoral implementation of the carbon tax.

Secretary-General of the Ministry of ESDM, Dadan Kusdiana, stated that discussions have taken place with the Ministry of Environment. He emphasized that a carbon tax is necessary as a step towards monetizing emissions generated by various activities.

“We indeed want to push for the monetization of carbon utilization. Not just ESDM but also the Ministry of Environment,” said Dadan.

According to Dadan, cross-sectoral discussions on the carbon tax are necessary because they are not yet regulated under Presidential Regulation No. 98 of 2021 concerning the Implementation of Carbon Economic Value for Achieving Nationally Determined Contribution Targets and Greenhouse Gas Emission Control in National Development (Presidential Regulation No. 98/2021). Regarding the resolution of cross-sectoral carbon tax issues, Dadan is confident that discussions can be concluded soon.

“Inter-sectoral discussions should progress more quickly,” he concluded.