Indonesia Cuts Carbon Tax as Global Energy Crisis Drives Caution

Indonesia’s smaller-than-planned carbon tax shows its caution in pushing toward its green goals while heeding the warning offered by the power shortage roiling the world.

The nation followed Singapore to become the second Southeast Asian country to impose a levy on carbon emissions as part of its tax reform. At just 30,000 rupiah ($2.11) per metric ton of carbon dioxide equivalent, the rate is less than half the 75,000 rupiah initially proposed and ranks as one of the lowest in the world, according to data compiled by BloombergNEF.

The step is modest, albeit made in the right direction, ...