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Indonesia Delays Fuel Tax Hike
The Indonesian government has postponed a plan to raise taxes on gasoline and diesel fuel by 200 rupiah (one U.S. cent) and 300 rupiah (1.5 cents), respectively, per liter.
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The Indonesian government has postponed a plan to raise taxes on gasoline and diesel fuel by 200 rupiah (one U.S. cent) and 300 rupiah (1.5 cents), respectively, per liter.
The hike, which was to take effect today, will be phased in later, according to the government. Reuters notes that previous tax increases have triggered protests.
The tax is intended to help Indonesia achieve an ambitious goal of boosting renewable sources of energy to 23% of its total energy mix by 2025 from 6% today. The country currently is the world’s fifth-largest emitter of carbon dioxide and other greenhouse gases.
Indonesia has pledged to reduce its growth in greenhouse gas emissions 29% by 2030. But Reuters points out the country also plans to add 35 gigawatts of electric generating capacity by 2019, 80% of it in the form of coal-fired power stations.
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