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Economy

Indonesia weighs carbon tax in bid to fund pandemic spending

Finance Ministry outlines economic and fiscal policies in new document

Cars are seen on the road in Jakarta last year. (Photo by Dimas Ardian)

JAKARTA -- Indonesia is considering introducing a carbon tax as it seeks to boost revenue to fund its spending to support an economy reeling from the COVID-19 pandemic.

The carbon tax could be applied to fossil fuels and emissions released by factories or vehicles, as well as "carbon-intensive" industries such as pulp and paper, cement, power generation and petrochemicals. The initiative was included in a Finance Ministry document, issued last week, that outlines the economic framework and fiscal policies for next year.

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