Jakarta, IO – The government strives to reduce air pollution in Jakarta among others by implementing a carbon tax planned to take effect in 2025.
Coordinating Economic Minister Airlangga Hartarto said this was a quick step by the government in reducing emissions, per Detikcom, Thursday (24/8).
Airlangga said a number of things would be taken into consideration before activating the policy. One of them is tax adjustment with carbon trade.
“There must be incentives and disincentives. We must implement both because carbon taxes are also needed to anticipate the Carbon Border Adjusted Mechanism (CBAM),” said Airlangga.
He hopes that companies participating in carbon trade already have carbon credits through carbon exchanges. After that, a carbon tax will be applied.
“So those are two things that complement each other,” he added.
In addition to the discourse, the government will also shut down coal-fired power plants (PLTU), which are said to be one of the worst emitters in Indonesia. In addition, the government will employ new technologies to increase efficiency.
Read: Air Pollution In Jakarta Getting Worse, Residents Mask Up Again Outdoor
Carbon tax is a tax imposed on emissions that have a negative impact on the environment. This is stipulated in Law 7/2021 (Harmonized Tax Law).
By implementing this policy, Indonesia hopes to achieve Net Zero Emission by 2060. (un)