Govt’s credibility on carbon tax questioned

Sumsel 8 coal-fired power plant (PLTU). (Source: Kementerian ESDM)

Climate Policy Initiative analyst Albertus Prabu Siagian concurred. According to him, the carbon tax should have been applied by the government from the beginning.

The government previously stated that it would implement a carbon tax on PLTU starting April but this failed to materialize. Finance Minister Sri Mulyani Indrawati on Wednesday (13/7) said the reason was because the state was still focused on handling the Covid-19 pandemic.

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Sri Mulyani said her ministry is still looking for the right time to implement the carbon tax and carbon trading so it would not have an adverse impact on the economic recovery.

“So we must be careful not to make policies that can exacerbate the risks posed by global uncertainties. But that doesn’t mean that the technical preparations and mechanisms are neglected. We keep working on them,” she assured. (rr)