International Journal of Research and Scientific Innovation (IJRSI) |Volume IX, Issue VIII, August 2022|ISSN 2321-2705 www.rsisinternational.org Page 46 The Carbon Tax Implementation Plan in Indonesia Fhandy Pandey * , Yanif Dwi Kuntjoro, Arifuddin Uksan, Sri Sundari Department of Energy Security, Faculty Defense Management, Indonesia Defense University, Bogor 16810, Indonesia *Corresponding Author Abstract: An increase in the concentration of greenhouse gases in the atmosphere damages the environment. The increase in greenhouse gases also causes global warming and negatively impacts it. The majority of the implementation of these policies showed a significant impact on the environment and state revenues. As one of the countries that are also committed to reducing the impact of climate change, Indonesia will start implementing a limited carbon tax policy in 2022 in the Coal Steam Power Plant (PLTU) sector at a rate of IDR 30 per kilogram of carbon dioxide equivalent (CO2e). However, in implementing the carbon tax policy, the Indonesian government still has to pay attention to several things that can be caused by implementing the policy, such as the emergence of economic distortions and the impact on low-income households. Therefore, the carbon tax policy must be designed in a suitable, synergistic, and compatible machine with the structure of the Indonesian economy. Keywords: Carbon, Tax, policy, Indonesia, greenhouse gases I. INTRODUCTION eveloped countries have already explored revenues from carbon emissions. State revenues from carbon emissions are then used to finance programs related to carbon emissions. Furthermore, Indonesia can follow the example of the developed countries in seeking funding sources for the State Budget sourced from carbon emissions by implementing a carbon tax policy. The term carbon footprint has become popular in recent years and has been widely used. Climate change is high on the political and corporate agenda. Accounting for a carbon footprint is urgently needed. Many approaches have been proposed to calculate the carbon footprint. Carbon footprint calculations range from basic online calculators to sophisticated life cycle analysis and input-output-based methods or tools. Despite its ubiquitous use, there is still a lack of an academic definition of what a 'carbon footprint' actually means. The scientific literature has no clear clarification. The definition of a carbon footprint is unclear, even though extensive energy and ecological economics research claims to measure a 'carbon footprint' has been published for decades (Hammerschlag and Barbour 2003). A review of the scientific literature, publications, and statements from the public and private sectors, as well as the general media, shows that the term 'carbon footprint' has become widespread in the public domain even though it is not clearly defined in the scientific community. The notion of 'carbon footprint' includes all direct and indirect CO2 emissions, that a unit of measurement mass should be used, and should not include other greenhouse gases or the indicator should be called the climate footprint. Whatever method is used to calculate the carbon footprint, it is important to avoid double counting along the supply chain or life cycle, as there are significant implications for carbon trading and offsetting practices (Lenzen et al. 2007). An increase in the concentration of greenhouse gases in the atmosphere damages the environment. The increase in greenhouse gases also causes global warming and negatively impacts it. Following the rule that can manage only measurable, measurements of the greenhouse gas intensity of various products, entities, and processes are underway worldwide, expressed as their carbon footprints. Methodologies for calculating carbon footprints are still evolving and are emerging as important tools for greenhouse gas management. The concept of a carbon footprint has permeated and is being commercialized in all areas of life and the economy. There is little coherence between studies' definition and calculation of the carbon footprint. There is disagreement over the selection of gases and the order in which emissions will be included in the calculations. Greenhouse gas accounting standards are a common resource used in footprint calculations, although there is no mandatory provision for trace verification. The carbon footprint is intended as a tool to guide relevant emission cuts and verifications. Therefore standardization at the international level is required. The current review describes the applicable carbon footprint methods and raises related issues. II. METHODS The literature review is a research conducted by researchers by collecting several books and magazines related to the problem and research objectives. This technique reveals various theories relevant to the problems being faced/researched as reference material in discussing research results. Literature reviews can be carried out from several sources, such as national and international journals, using three databases (BASE, Science Direct, and Neliti) and the relevant textbook or handbook on carbon footprint research and taxation. Life Cycle Assessment The carbon footprint is analyzed so that a production activity knows how much greenhouse gas emissions from these activities are. Calculating carbon footprint can use a life cycle approach (life cycle assessment). Sources of greenhouse gas emissions at each production stage can be identified using a life cycle assessment approach. Life cycle assessment (LCA) is a method used to analyze environmental impacts that occur. Environmental impacts can occur due to the production D