Indonesia Delays Carbon Tax to July to Shield Purchasing Power

Indonesia will push back the implementation of its new carbon tax to July to cushion the impact of rising global energy prices on consumers.

The levy, which was set to be imposed on coal-fired power plants starting next month, will be delayed to maintain economic recovery and Indonesians’ purchasing power during the Ramadan and Eid al-Fitr festivities, fiscal policy chief Febrio Kacaribu said in a briefing. The postponement will also give the government time to prepare rules on carbon pricing, he added.

“The roadmap and several regulations are not yet complete,” Finance Minister Sri Mulyani Indrawati said at the same ...