Nov

11

Indonesia to Impose Carbon Tax in April 2022, Starting with Coal Power Plants

Indonesia will begin to tax coal-fired power stations in April 2022 using a tax mechanism based on emission limits, or cap and tax, to start the implementation that will eventually reach all sectors of the economy to reduce national greenhouse gas emissions. Indonesia’s carbon tax is a strong signal that will encourage the development of carbon markets/carbon emissions trading, technological innovation, and more efficient and eco-friendly investments in the country.

The carbon tax was part of the country’s tax reforms, the latest in a series of legislation overhauls that aim to make the country more attractive for investment. The carbon tax is imposed on the carbon content of fossil fuel. It is based on the notion that charging polluters based on how much they pollute will result in behavioral change toward greener practices.

Under the law, every kilogram of carbon equivalent emissions that exceed a certain cap will be subjected to a Rp-30 (0.21 cent dollar) tax. That is roughly equal to about $2.1 per metric ton of carbon equivalent. The government hopes the tax will restrict greenhouse gas emissions, which contributes to an increase in global temperature, and will ultimately reduce the risk of climate disasters in Indonesia.

According to Indonesia’s Nationally Determined Contribution (NDC) plan, the country aims to reduce carbon emission without outside help by 29 percent compared to the business-as-usual level by 2030. With international support, Indonesia aims to reduce its emissions by 41 percent of the business-as-usual level.

The government has been working on a carbon tax roadmap since the beginning of this year. The inclusion of carbon tax in the country’s tax code was its first milestone. Next, the government plans to finalize a presidential decree on the economic value of carbon and develop a carbon tax and carbon exchange mechanism. Finally, the Ministry of Energy and Mineral Resources will launch a pilot project for carbon trading in the energy sector by the end of this year.

The Finance Ministry claims that putting a price on carbon is a policy that Indonesia should adopt for a number of reasons. First, it is an effective climate change mitigation strategy. Second, it provides significant revenue that can solve budget deficit problems. Lastly, it can be implemented simultaneously with the removal of fossil fuel subsidies to achieve a sustainable low-carbon economy. All of these points are valid and justified as long as the carbon tax policy is carefully designed.

The government is aiming to have the carbon tax fully implemented by 2025 through the carbon exchange, where companies can trade their emissions permits. That will be done through the gradual expansion of the carbon taxation sector, depending on how ready it is and the creation of carbon tax management regulations.

Should you wish to know more about carbon tax in Indonesia, please drop us an email at info@schinderlawfirm.com.

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Dear valued Visitor,

Data is a valuable currency in this new world. In the midst of digital transformation, the Indonesian government has taken the final decision to pass the Pelindungan Data Pribadi (PDP) Bill by September 2022. The PDP Law applies to all businesses established in Indonesia and puts the consumer in control. The task of complying with this regulation falls upon businesses.

The PDP Law affects a variety of business operations, including how your sales team prospect and how marketing initiatives are managed. Businesses have had to reassess their business procedures, applications, and forms. Additionally, all businesses that work with personal data should designate a Data Protection Officer (DPO) or data controller to oversee PDP compliance.

In line with this spirit, it gives us great pleasure to announce and share with all our esteemed clients and business associates that Schinder Law Firm is prepared to assist your company to understand the impacts of the Personal Data Protection Law (PDPL) and take the required measures to comply with the law. Our Privacy, Data Protection, and Cybersecurity practice group is a pioneer in providing data privacy law services in Indonesia. Personal data protection services include but are not limited to:

  • Assessing the existing systems, processes, and controls, etc.
  • Providing provide gap assessment on the existing systems, processes, and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDP Law
  • Developing policies, best practices, and procedures
  • Advising on the security of personal data and managing data breaches
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role, and responsibilities of a data protection officer
  • Advising on cross-border transfers of personal data
  • Carrying out data protection impact assessments and data protection audits
  • Recommending other necessary corrective actions in order to comply with the PDP Law
  • Training on the PDP Law tailored to clients’ businesses

We look forward to many more opportunities in the year ahead with your continued support and trust. For consultation, please send us a WhatsApp or Email.

Warmest regards,
Naz Schinder
Managing Partner

Keep Up with the New Law in Indonesia: Personal Data Protection

  • Assessing the existing systems, processes and controls, etc.
  • Providing provide gap assessment on the existing systems, processes and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDPL.
  • Developing policies, best practices and procedures.
  • Advising on security of personal data and managing data breaches.
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role and responsibilities of a data protection officer.
  • Advising on cross-border transfers of personal data.
  • Carrying out data protection impact assessments and data protection audits.
  • Recommending other necessary corrective actions in order to comply with the PDPL.
  • Training on the PDPL tailored to clients’ businesses.
Privacy, Data Protection and Cyber Security
We help our clients to understand the impact of the Personal Data Protection Law (PDPL) on their companies and take the required measures to comply with the law.