Does the Government Need to be Stricter Regarding Carbon Tax in Indonesia?

Jakarta, Ideatax -- In the face of increasingly deteriorating climate conditions, regulations regarding carbon tax in Indonesia need to be considered to reduce negative impacts on the environment. As global attention to the issue of climate change increases, questions arise about the extent to which governments should tighten these policies to address the challenge of climate change.

 

Let's discuss it together through the explanation below, and consider how implementing a carbon tax can support efforts to reduce emissions and encourage sustainability in Indonesia.

 

A Glimpse into Carbon Tax

Carbon tax is a form of tax imposed on economic activities that have the potential to produce carbon emissions, such as gas, oil and coal.

 

The aim of this policy is to reduce or even eliminate the use of fossil fuels which pose a risk of damaging the climate, while at the same time making relevant parties pay compensation for the potential climate damage caused.

 

Implementation of Carbon Tax in Indonesia

In 2021, the Indonesian Government proposes implementing a carbon tax based on Law Number 7 of 2021 regarding Harmonization of Tax Regulations (HPP). In this plan, a tax rate is set at IDR 30 thousand per kilogram of CO2. However, due to considerations related to the carbon market mechanism and economic conditions at that time, the implementation of the carbon tax was postponed until 2025. It is important to remember that even though the carbon tax rate in Indonesia is among the lowest in the world, each country has its own policies regarding this matter.

 

The Importance of Implementing Carbon Tax

The importance of tightening the implementation of carbon tax cannot be ignored because its impact can affect various aspects, such as:

1. Reduction of Carbon Emissions

The main goal of a carbon tax is to reduce greenhouse gas emissions. This policy provides financial incentives to companies to reduce the carbon impact of their activities.

2. Driving the Energy Transition

With a carbon tax on high-emission energy sources, the government can spur a shift from the use of fossil fuels to renewable resources that are more environmentally friendly.

3. Overcoming the Impact of Climate Change

Apart from reducing emissions, this policy also plays a role in overcoming the impacts of climate change, including rising global temperatures and extreme phenomena related to greenhouse gases.

 

That is a brief discussion about carbon tax in Indonesia. However, it is important to remember that implementing a carbon tax is not a simple matter. As an individual or company who wants to understand more deeply about these tax rules, you need credible and professional services.

 

Therefore, trust Ideatax, a reliable solution to provide the best guidance, service and solutions related to all your tax problems. Apart from that, you can learn many other things related to taxation in Indonesia through our articles at https://ideatax.id/articles.

 

Or if you need direct consultation, contact Ideatax now and we are ready to help you understand and make good use of carbon tax.