Rajah & Tann Regional Round-Up
your snapshot of key legal developments in Asia
Issue 1 - Jan/Feb/Mar 2022
 

Committing to a Greener Future: Indonesia Embraces Implementation of Carbon Economic Value

Following Singapore's lead, Indonesia became the second country in Southeast Asia to regulate its carbon market. Under Presidential Regulation No. 98 of 2021 ("Regulation"), the government introduced, among other matters, the concept of carbon economic value, as well as the regulatory framework on carbon pricing and carbon trading arrangements.


The Regulation also sets out mitigation and adaptation actions, which are the two main methods to tackle climate change. Both methods apply to the public and the private sectors, and require them to take actions such as establishing a greenhouse gas emissions inventory and increasing the carbon efficiency of power generation and transportation.


The government will also use carbon economic value, which will be implemented through carbon trading, economic incentives, and carbon levies.


As with other great endeavours, details on the implementation of the Regulation will be fleshed out in future ministerial level regulations. 



Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.

 

Assegaf Hamzah & Partners
Jakarta Office
Level 36 & 37, Capital Place
Jalan Jenderal Gatot Subroto Kav 18
Jakarta 12710, Indonesia

Surabaya Office
Pakuwon Center, Superblok Tunjungan City
Lantai 11, Unit 08
Jalan Embong Malang No. 1, 3, 5,
Surabaya 60261, Indonesia
http://id.rajahtannasia.com


Contacts:

Bono Daru Adji
Senior Partner
D +62 21 2555 7800
F +62 21 2555 7899
bono.adji@ahp.co.id

Ahmad Fikri Assegaf
Senior Partner/Co-Founder
D +62 21 2555 7800
F +62 21 2555 7899
ahmad.assegaf@ahp.co.id

Chandra M Hamzah
Partner
D +62 21 2555 7800
F +62 21 2555 7899
chandra.hamzah@ahp.co.id

Eri Hertiawan
Partner
D +62 21 2555 7800
F +62 21 2555 7899
eri.hertiawan@ahp.co.id

Ibrahim Sjarief Assegaf
Managing Partner
D +62 21 2555 7800
F +62 21 2555 7899
ibrahim.assegaf@ahp.co.id


Rajah & Tann Singapore LLP


Contacts:

Hamidul Haq
Partner
D +65 62320398
hamidul.haq@rajahtann.com

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