Indonesia maturing carbon tax regulation in response to EU’s CBAM

The Indonesian government is still working on finalizing its carbon tax regulation, which aims to anticipate the EU’s Carbon Border Adjustment Mechanism (CBAM) that will be fully implemented in 2026.

"The regulation is still being perfected as the EU will implement CBAM in 2026,"  Coordinating Minister for Economic Affairs Airlangga Hartarto said.

He said that Indonesian industries need to prepare to shift to green energy and transition into cleaner industries, as the CBAM transitional period has begun.