Exploring Carbon Tax On Mining Sector
Opportunities and challenges in mining industry in Indonesia
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Wednesday, August 18, 2021 - 14.00 – 15.35 Jakarta Time
Invited Speakers
Febrio Nathan Kacaribu,Head of Fiscal Policy Agency
Bill Sullivan, Senior Foreign Counsel with Christian Teo & Partners and Senior Adviser to Stephenson Harwood LLP
Ali Mardi, Tax Partner of Delloite Touche Solutions
Dra. Liana Bratasida, Direktur Eksekutif Asosiasi Pulp & Kertas Indonesia
Dendi Ramdani, Economist at Bank Mandiri
Harry Kristiono, Chief Operating Officer of PT Medco Energy Mining Indonesia
Hendra Sinadia, Direktur Eksekutif Asosiasi Pengusaha Batubara Indonesia (APBI – ICMA) (MODERATOR)
Background
The Indonesian government has announced plans to introduce carbon pricing in an effort to help reduce greenhouse gas emission and boost tax revenues in Southeast Asia’s largest economy.
In a recent report by Bahana Sekuritas said the government may pocket Rp 53 trillion from carbon tax, saying the largest contributor to carbon dioxide (CO2) emissions in Indonesia is the industrial sector with a share of 37 percent, tailed by electricity at 27 percent, and transportation at 27 percent.
The report said that for a developing country like Indonesia, a carbon tariff of US$5-10 per ton of CO2 would be reasonable.
Meanwhile, a number of international oil companies operating in Indonesia have raise plans to develop carbon capture and storage (SSC) in waiting for a firm carbon policy.
While the planned policy has yet to be finalized, the government is preparing to alternatives on how to collect carbon tax, according to the 2022 fiscal policy document of the ministry.
The first alternative is to collect carbon tax indirectly through existing instruments such as income tax, value added tax, luxury sales tax, vehicle tax, fuel oil tax, excise, and non-tax government revenue
The second option is for the government to directly introduce a new instrument, the carbon tax, which will require the revision of Law No 6 Year 1983 on General Tax Provisions and Procedures.
The webinar organized jointly by CoalAsia Magazine and Petromindo.com would update the government policy to introduce carbon tax, and explore potential opportunities and challenges for the country’s mining sector of the planned carbon tax. The webinar would also present lesson learned of the carbon-trading practices in Indonesia and potential opportunities to implement in mining sector.
In a recent report by Bahana Sekuritas said the government may pocket Rp 53 trillion from carbon tax, saying the largest contributor to carbon dioxide (CO2) emissions in Indonesia is the industrial sector with a share of 37 percent, tailed by electricity at 27 percent, and transportation at 27 percent.
The report said that for a developing country like Indonesia, a carbon tariff of US$5-10 per ton of CO2 would be reasonable.
Meanwhile, a number of international oil companies operating in Indonesia have raise plans to develop carbon capture and storage (SSC) in waiting for a firm carbon policy.
While the planned policy has yet to be finalized, the government is preparing to alternatives on how to collect carbon tax, according to the 2022 fiscal policy document of the ministry.
The first alternative is to collect carbon tax indirectly through existing instruments such as income tax, value added tax, luxury sales tax, vehicle tax, fuel oil tax, excise, and non-tax government revenue
The second option is for the government to directly introduce a new instrument, the carbon tax, which will require the revision of Law No 6 Year 1983 on General Tax Provisions and Procedures.
The webinar organized jointly by CoalAsia Magazine and Petromindo.com would update the government policy to introduce carbon tax, and explore potential opportunities and challenges for the country’s mining sector of the planned carbon tax. The webinar would also present lesson learned of the carbon-trading practices in Indonesia and potential opportunities to implement in mining sector.
The webinar would explore:
- Update on the government plans to impose carbon tax.
- How carbon tax potentially effecting the supply and demand of coal in Indonesia?
- What are the opportunities and challenges of planned carbon tax.
- Legal overview of the planned carbon tax
- Lesson learned from other countries implementing carbon tax
Rundown
| 14.00 | Introduction and opening remarks: Hendra Sinadia, Direktur Eksekutif Asosiasi Pengusaha Batubara Indonesia (APBI – ICMA) |
|---|---|
| 14.05 | Opening Speech: Regulation update on the government’s plan to impose carbon tax on emitting industries or fossil fuels. |
| 14.25 | Keynote Speech: Legal Overview of the government’s plan to impose carbon tax on emitting industries Speaker: Bill Sullivan, Senior Foreign Counsel with Christian Teo & Partners and Senior Adviser to Stephenson Harwood LLP |
| 14.45 | The outlook of Biodiesel in global focus toward a cleaner and efficiency energy source. |
| 15.05 | Banking Perspective for the planned carbon tax policy in Indonesia. Speaker: Dendi Ramdani, Economist at Bank Mandiri |
| 15.20 | Lesson learned on countries implementing carbon tax: What does it mean for Indonesia’s plan? Speaker: Liana Bratasida, Executive Director of Indonesian Pulp and Paper Association |
| 15.35 | Panel Discussion: The panel discussion would explore miners’s perspective on the government’s plan to impose carbon tax; what are potential implications for supply and demand trend of coal in the future? What are impacts on the competitiveness of Indonesian coal compared to other producing countries? |
Sponsored by
Day/Date
Wednesday, August 18, 2021
14.00 – 15.35
Jakarta Time
Investment
Rp.1,000,000,-/participant
*) Recorded Webinar Video, Webinar Materials *) Cancellation Fee : 7 days before the event : 80%Venue
Zoom Webinar
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