Indonesia carbon tax policy: A key role in sustainable development goals

The negative externality of carbon emissions is a global issue that necessitates government intervention. When countries begin to incorporate the SDGs into their national development plans, the current policy success parameters are required to ensure that these goals are aligned and achieved by 2030. The purpose of this study is to discuss tax policy as a key component of long-term development. The approach based on this problem is normative juridical research in the form of a problem approach in this journal through a literature review and invited regulations that can strengthen what is written in this journal. Furthermore, the social costs of carbon emissions can be partially transferred with the appropriate proportional coefficients depending on the parameters of the carbon tax policy, such as the expected emission level and the carbon tax price. The ideal carbon tax formulation can be used as a guideline in developing policies to address the externalities of carbon emissions and global warming in support of the SDGs.

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