The Urgency of Implementing a Carbon Tax in Indonesia: From ‘Greed’ to ‘Green’?

Abstract

This study aims to analyze the urgency of implementing a carbon tax in Indonesia. The research is a literature review using secondary data obtained from several sites on the internet and international journals. The results of the study suggest that carbon taxes are very necessary to be implemented in Indonesia given the deteriorating environmental conditions that affect the quality of public health, international emission reduction targets and as one of the strong reasons for not relying on fossil fuels. It is hoped that carbon emitting companies can slowly transform into Green Companies, green companies by minimizing carbon use. Contributions are needed from all parties, even from all countries in the world, to work together to reduce carbon emissions. The clear benefits that will be felt by implementing a Carbon Tax are reducing global emissions and creating cleaner air for the whole world. It Is very urgent to implement a carbon tax in Indonesia considering the increasingly deteriorating environmental conditions which will affect the quality of public health. The emission reduction target which is Indonesia’s commitment at the international level can also be achieved through the implementation of a carbon tax. Apart from that, the carbon tax is an incentive for Indonesia not to depend on fossil fuels and can then replace them with renewable and more environmentally friendly fuels. The tax revenue from the carbon tax should be reallocated to financing public health and environmental improvement.