Effective Strategy in Overcoming Challenges in Implementing Carbon Tax Policy

Abstract

Carbon tax policies have been recognized as an important tool to address climate change in various countries, including Indonesia. However, implementation of this policy in Indonesia has experienced delays indicating significant challenges. This research aims to identify and analyze factors that hinder the implementation of carbon tax policies in Indonesia and formulate strategies to overcome these challenges. Using a qualitative approach and data collected through a literature review, this research found that the main obstacles include political and governance factors, business and economic influences, and public resistance. To overcome these obstacles, it is recommended to implement a strategy of gradual policy implementation, building a supporting coalition, effective revenue management, and integrating carbon tax policies into a broader policy mix to achieve long-term decarbonization.