Indonesia: Govt to impose carbon tax on coal-fired power plants

The Indonesian government will levy carbon tax on coal-fired power plants from 1 Jul’22 in its latest effort to reduce emissions. At the initial stage, the government will set a tax rate of 30 Indonesian rupiah per kilogram of CO2 emissions, equivalent to $2.1 per tonne of CO2. This is most likely to force power plants discharging high emissions to use high-CV and low-ash coal.