Carbon tax signals higher power costsRIGHT DIRECTION: Analysts said that Indonesia is making the right move, as one of the world’s top carbon polluters strives for zero emissions by 2060Reuters, Singapore and JakartaIndonesia is set to become Asia’s fourth country to introduce a carbon tax, but analysts expect opposition from industries that have warned of implementation problems and higher power costs that could undermine manufacturing competitiveness. The carbon tax will be introduced at a minimum rate of 30 rupiah (US$0.0021) per kilogram of carbon dioxide equivalent, less than half of the originally proposed rate of 75 rupiah. The carbon tax has been generally welcomed, although some industry analysts have questioned the logic of the government taxing carbon emitted by utilities while subsidizing the electricity they produce. Coal producers and electricity providers say that higher electricity prices would likely be passed on to consumers as higher prices for goods. “Imposing a carbon tax on coal-fired power plants will affect electricity prices and the competitiveness of Indonesia’s manufacturing,” Sinadia said.

Source: Taipei Times October 08, 2021 15:56 UTC