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Climate Change

Indonesia industry associations welcome further carbon tax delay

Global uncertainty, need to work out details reasons behind second postponement

Indonesia is trying to balance reducing carbon emissions from resources such as coal with the need for economic growth.   © Reuters

JAKARTA -- Indonesian industry groups on Monday welcomed the government's decision to delay the implementation of the planned carbon tax for the second time this year, citing unclear regulations and unfavorable economic conditions for such a move.

Indonesia's carbon tax was supposed to take effect in April following the passage of a tax law last year that includes the provision, with coal-fired power plants targeted in the first phase of the implementation as the country aims to meet carbon-cutting targets.

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