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The upstream textile industry is worried about the increase in electricity rates of PT PLN (Persero) in line with the plan to implement a carbon tax for coal-fired power plants or coal-fired power plants worth IDR 30 per kilogram of carbon dioxide equivalent (CO2e) next year. Secretary General of the Indonesian Filament Yarn and Fiber Producers Association (APSyFI) Redma Gita Wirawasta said the increase in electricity rates for state-owned companies was inevitable after the implementation of the carbon levy. However, Redma said the Fiscal Policy Agency (BKF) and PT PLN had not yet arrived at a definitive decision regarding the payment scheme for the carbon levy.

Redma hopes that the government can provide additional subsidies to PLN in line with the implementation of the carbon tax policy. He hoped, he said, that the increase in electricity rates could be suppressed so that it would not have a serious impact on production costs.

"If PLN electricity increases again, of course it will increase our expenses, like it or not we will direct it to the selling price, but we don't know the amount yet, we are still waiting for the calculation from PLN," said Redma by telephone, Wednesday (11/17/2021).

However, Redma underlined that the adjustment of the price of goods is relatively difficult for the export market. It is feared that the maneuver will reduce the competitiveness of domestic textile products in the international market. Moreover, he added that the price of export products is already relatively expensive due to shipping costs and the energy crisis.

"For the local market, we can adjust the selling price because there is already a garment safeguard, but in the end it will be inflation," he said.

PT PLN ensures that the imposition of a carbon tax on steam power plants (PLTU) will have an impact on increasing the cost of supplying electricity (BPP).

PLN's Director of Commerce and Customer Management, Bob Saril, said that the tax imposed by the government will correlate with the subsidies and compensation that must be paid.

Even so, he ensured that PLN as a state-owned company would support all government policies, including the imposition of a carbon tax starting 2022.

"The imposition of a carbon tax will increase the BPP, and of course with the current tariff scheme it will correlate with subsidies and compensation," he said, Wednesday (13/10/2021).

These provisions were stipulated after the DPR passed the Tax Regulation Harmonization Bill (HPP) into law. The imposition of the carbon tax will take effect from April 1, 2021.

"The first time [a carbon tax] was imposed on an agency operating in the coal-fired power plant sector at a rate of Rp. 30 per kilogram of CO2e or an equivalent unit," reads Article 17 paragraph 3 of the HPP Law.