International Journal of Social Science and Business
Vol. 8 No. 4 (2024): November

Predicting Optimal Tariff of Indonesia’s Carbon Tax: A Reflection on Japan and Singapore

Iqbal, Syaiful (Unknown)
Diana , Shelly (Unknown)



Article Info

Publish Date
25 Nov 2024

Abstract

This study aims to predict the optimal carbon tax rate in Indonesia through a reflection on the experiences of Singapore and Japan, so it does not cause carbon leakage. This study uses a qualitative descriptive approach to explain the mechanism of determining carbon tax policies in a country along with the amount of the rate. The quantitative and qualitative data involved in this study are collected from policy documents, official government reports, and scientific articles on carbon taxes in Japan, Singapore, and Indonesia. This study argues that the carbon tax rate in Indonesia is lower than Japan and Singapore. Japan applies a tax rate of USD 2.65/tCO2, Singapore sets a tax rate of USD 18/tCO2, while Indonesia applies a minimum of USD 1.88/tCO2. These differences can trigger carbon leakage in Indonesia. The analysis results the carbon tax tariff in Indonesia optimally is IDR 300,000/tCO2. This tariff  provides a policy recommendations to overcome the limitations of carbon tax policies in Indonesia.

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Journal Info

Abbrev

IJSSB

Publisher

Subject

Social Sciences

Description

International Journal of Social Science and Business (IJSSB) is an open access, peer-reviewed and refereed journal published by Universitas Pendidikan Ganesha (Undiksha), Indonesia. The main objective of IJSSB is to provide an intellectual platform for the international scholars. IJSSB aims to ...