<![CDATA[The European Union's implementation of the Carbon Border Adjustment Mechanism (CBAM) policy presents significant structural challenges for developing countries, including Indonesia. This instrument was designed by the EU to align the carbon cost burden between imported products and domestically produced goods in the region. In its transitional phase, the CBAM scheme began to be gradually implemented for seven main commodities: iron, steel, aluminum, fertilizer, electricity, cement, and hydrogen. Although the proportion of Indonesia's exports to the European market is relatively small compared to other market destinations, the Indonesian government continues to take adaptive measures. Using a qualitative method with a descriptive-analytical approach based on literature studies, this study operates a theoretical framework of state behavior and national interest to dissect the rationality of the Indonesian government. The findings indicate that Indonesia's response to the CBAM regulation is a manifestation of strategic calculations to achieve national objectives by mitigating threats, exploiting available opportunities, and optimizing existing national capacity.]]>
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