Implementation of Carbon Tax Awaiting Cross-Sector Roadmap

Ministry of Environment (Kementerian Lingkungan Hidup – “KLH”) is still drafting regulation related to the implementation of implementation of cross-sector carbon tax. The Minister of Environment (“Minister of LHK”), Hanif Faisol Nurofiq explained that the key points reinforced to support the implementation of this policy are the existence of the Cross-Sector Carbon Trading Roadmap.

“What we are tightening in this cross-sector is related to the carbon trading roadmap,” said Hanif to Hukumonline.

The existence of a roadmap is crucial according to him as it serves as the basis for the implementation of the policy. The Cross-Sector Carbon Trading Roadmap, according to Hanif, determines the market mechanisms that will be the goals both domestically and internationally. The determination of the market target mechanisms also greatly influences Indonesia's reputation regarding its commitment to carbon trading.

Hanif explained that currently, the formation of the Cross-Sector Carbon Trading Roadmap is still awaiting the preparation in each involved sector. He admitted that he had already sent letters to all relevant sectors regarding its resolution.

“We are already pushing. We have written several times for the preparation of the carbon trading roadmap for each of those,” he emphasized.