Implications of the Implementation of a Carbon Tax on Investment and Economic Growth in Indonesia

Rasji Rasji(1), Kevin Noble Effendi(2), Auzan Wafi(3),

(1) Universitas Tarumanagara
(2) Universitas Tarumanagara
(3) Universitas Tarumanagara
Corresponding Author


Law Number 21 of 2021 concerning Harmonization of Tax Regulations is a form of renewal of various tax policies which has added a new tax object, namely carbon tax. However, the implementation of this regulation raises several problems, such as the increase in electricity prices that rely on Steam Powered Power Plants (PLTU), which can have an impact on companies' investment interest. Apart from that, the implementation of the carbon tax itself does not yet have a clear legal umbrella regarding setting emission limits, the percentage of emissions that can be traded and subject to carbon tax, and regulations related to the object and subject of the tax. The research analysis used is qualitative analysis, namely collecting data from various types of literature from which conclusions will then be obtained and become research results. The approach used is an empirical approach, namely looking at how the law operates in a society. Legal uncertainty surrounding carbon taxes and frequent policy changes can discourage investment. If companies feel uncertain about the future of carbon tax policy, this may influence investment decisions. So the Government needs to mitigate this, for example by considering compensation or incentive programs. Companies that invest in green technologies may be given tax incentives or financial assistance to mitigate the additional tax burden that may arise from a carbon tax


Carbon, Legal Uncertainty, Tax


Jose Acalde dan Bernardo Moreno, “Pigovuvian Taxes: A Strategic Approach”, Journal Of Public Economic Theory, 2018, DOI: 10.1111/1097-3923.00012.

Margono, Dkk, “Keabsahan Pengenaan Pajak Karbon Dalam Peraturan Perpajakan”, Jurnal USM Law Review, Vol. 5 No. 2, .2022.

Penguatan Hal-Hal Penting Usai Pengesahan Pajak Karbon | Direktorat Jenderal Pajak Diakses pada tanggal 28 September 2023 Pukul 20.57.

Polemik Dampak Domino Pajak Karbon, Pemerintah Diminta Berikan Subsidi ( Diakses pada tanggal 28 September 2023 pukul 21.03.

Septha Lidya Purba, “Politik Hukum Pengaturan Pajak Karbon Dalam UU Nomor 7 Tahun 2021 tentang Harmonisasi Peraturan Perpajakan”, Tesis, Universitas Gadjah Mada, 2022.

Siyoto, Sandu dan Ali Sodik, Dasar Metodologi Penelitian, Yogyakarta: Literasi Media Publishing, 2016.

Full Text: PDF

Article Metrics

Abstract View : 103 times
PDF Download : 56 times

DOI: 10.57235/qistina.v2i2.1259


  • There are currently no refbacks.

Copyright (c) 2023 Rasji Rasji, Kevin Noble Effendi, Auzan Wafi

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.