Tax Carbon Policy

Abstract

The transition to a green economy has been widely discussed around the world as a response to the worsening climate change crisis. Carbon tax is predicted to be a significant first step. The authors conducted in-depth interviews related to the carbon tax policy as a momentum to accelerate the sustainability of Indonesia's economic growth that is in accordance with the concept of green economy or not. Therefore, the new hypothesis that emerges later can show the true purpose and role of the carbon tax policy for Indonesia's future. It is concluded that, similar to other countries in the world, Indonesia has the potential to implement a carbon tax policy in order to reduce and control carbon emissions. The sectors that can be directly burdened by carbon tax are power generation, transportation, building industry, pulp and paper industry, cement, and petrochemicals. Although not perfect, this carbon tax should be implemented immediately.