The government is urged to actively build clearer and more transparent lines of communication to the industry and business actors regarding the carbon tax implementation plan, which aims to make Indonesia able to compete with the global market. There are many rejections from the industry regarding carbon taxes due to a lack of information and unclear policies.

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Fabby Tumiwa, Executive Director of IESR, stated that information and explanations from the government regarding the carbon tax mechanism, such as which sectors will be taxed and how to calculate the tax base, creates uncertainty for the industrial world. This has resulted in many industries rejecting the carbon tax policy, which so far has not received certainty from the government.

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The concept of a country’s competitiveness in the global market is currently undergoing a shift, where competitiveness is not only determined by the quality or price of goods and services but has taken into account the costs of externalities arising from the carbon emission footprint of these goods and services. In this way, it encourages the government to realize a carbon tax in Indonesia

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