Government working on carbon tax regulations: Finance minister 

Finance Minister Sri Mulyani Indrawati said the government was still developing carbon tax regulations, covering aspects like legislation and economic readiness. 

The government is still preparing the necessary rules and regulations on the carbon tax, Finance Minister Sri Mulyani Indrawati said during the Indonesia Net-Zero Summit (INZS) in Jakarta on Saturday. 

Sri Mulyani said the preparation for the carbon tax system involves various aspects, including regulations, legislation and the readiness of the economy and industry. She emphasized that when the policy was to be implemented, it should function effectively.  

"I believe it is vital that we continue to make the most of this mechanism as an instrument for controlling emissions," she said, as quoted by Antara news agency.  

She said the system would help assess and limit carbon emissions, supporting future reduction goals. However, she did not explain when the carbon tax would be officially implemented.  

Earlier on July 23, the Coordinating Economy Ministry’s state-owned enterprises business development, research and innovation deputy, Elen Setiadi, said the carbon tax would be implemented in two phases.  

The carbon tax will apply only to power generation in the first phase. Then, in the next phase, it would also include fossil fuel transportation.  

"The introduction of these two sub-sectors is expected to cover around 71 percent of emissions from the energy sector, with 48 percent from power generation and 23 percent from transportation, or about 39 percent of Indonesia's total emissions," Elen said in Jakarta.  

The Indonesian government aims to achieve net-zero emissions by 2060.  

Elen noted that adopting a green economy could stabilize Indonesia's economic growth at an average of 6.2 percent until 2045. It is also expected to cut emissions by 86 million tons of CO2 equivalent and create 4.4 million new jobs.  

"The government's efforts [in preparing the carbon tax] will yield better results if supported by the private sector, academics, civil society and the media," said Elen.   

Source: The Jakarta Post 

Indonesian app-based taxi drivers strike in protest over low pay 

Over 1,000 motorcycle taxi drivers staged a strike in several Indonesian cities on Thursday to protest against low pay, and called on the government to provide more protection against what they say are unfair practices by ride-sharing companies. 

Drivers wearing trademark green jackets gathered outside the communications ministry and near the Jakarta offices of Indonesia's largest technology company GoTo and Southeast Asia's biggest ride-hailing and food delivery firm Grab. 

Motorcycle taxis are ubiquitous across Indonesia, including in the capital Jakarta, known for some of the world's worst traffic congestion, and the protests prompted some complaints on social media of slow services. 

A spokesperson for GoTo's ride-hailing unit Gojek said on Thursday its operations were running as normal, and that it was open to drivers' input. 

Grab's tariffs were designed to ensure stable demand for its services, while keeping in mind drivers' earnings, said Tirza Munusamy, chief of public affairs for its Indonesian unit. The Singapore-based company did not respond to a query about whether the strike disrupted its operations. 

Drivers want ride-hailing firms to raise the share they get for every trip from 80% now and for the government to give special status for their terms of employment so they have more bargaining power over fees, said Andi Kristiyanto, a representative of the National Online Taxi Coalition, which arranged the protest. 

Driver Wandi said he worked for 10 hours every day but made less than 150,000 rupiah ($9.73) most days. This means his daily income is below Jakarta's minimum wage of 5 million rupiah ($324.5). 

"We want platforms to listen to us," said Wandi, who gave only one name. 

GoTo and Grab offer ride hailing, food delivery, and other services in several Southeast Asian countries, and have a combined market capitalisation of about $18 billion. 

The companies recognise drivers as partners, so they do not have the legal obligation to set minimum wages, pay social security insurance or limit working hours, said Nabiyla Risfa Izzati, a labour law lecturer at University of Gadjah Mada. 

"It's right to push the government so that it is the one that regulates the companies," she said, adding it needed to set floor and ceiling fees across all industries for the drivers, such as ride hailing and food delivery. 

Indonesia's manpower ministry did not immediately respond to a request for comment, while the transport ministry said it did not regulate fees, urging platforms to listen to drivers. 

Source: Reuters 

Golden Visa draws USD259.4 mln in investment: official 

The Golden Visa has attracted investment to the tune of Rp4 trillion or around US$259.4 million into the country, with the number of applicants approaching 500, since its launch on July 25, 2024, an Indonesian government official said. 

Director general of immigration at the Law and Human Rights Ministry Silmy Karim conveyed this information during the "Golden Visa Towards Golden Indonesia 2045" webinar, which was followed from here on Thursday. 

Karim said that most Golden Visa applicants are parking their investments in the banking sector. 

These investments are in the form of savings and bonds, which are instruments to invest in the capital market or government bonds, he expounded. 

"Apart from that, there are also many (applications) for second home visas," he added. 

He said that the Golden Visa is an effort by the Immigration Directorate to support the national economy by allowing foreign investors to live in Indonesia for a period of 5–10 years. 

Investors who wish to apply for a Golden Visa need to meet a number of requirements. For example, individual investors need to invest around USD350 thousand to USD700 thousand. 

Meanwhile, high-ranking investors such as members of boards of directors or holding company representatives need to invest in the range of $25 million to $50 million. 

"Immigration is not only limited to conducting inspections at airports or seaports or only related to ordinary visit visas. Immigration also has a role to benefit people," he said. 

The Golden Visa was launched by President Joko Widodo (Jokowi) on July 25. In addition to international investors and business players, foreign tourists who meet the criteria as well as global talents can also apply for the visa. 

National football team coach Shin Tae-yong is one of the Golden Visa recipients under the global talent category. 

Source: Antaranews