Advancing Climate Action: Indonesia’s Carbon Tax

June 2025, BINUS Business School hosted Dr. Guntur F. Prisanto for an insightful guest lecture on Indonesia’s carbon tax policies, giving students direct exposure to one of the nation’s key policymakers in fiscal and environmental regulation.
The session introduced the fundamentals of greenhouse gases, the greenhouse effect, and the rising urgency of global carbon emissions. Students explored how policy instruments such as carbon trading, carbon credits, and carbon taxes operate, supported by clear visual explanations of mechanisms like cap-and-trade and certified emission reductions.
Dr. Guntur outlined Indonesia’s objectives in implementing a carbon tax—driving behavioral change, reducing emissions, and encouraging low-carbon innovation and investment. He also highlighted Indonesia’s long-term commitments, including the goal of achieving Net Zero Emissions by 2060, and explained how the carbon tax roadmap aligns with renewable energy development, national emission targets, and broader fiscal reforms.
The discussion also addressed key implementation challenges, such as integrating the tax with the developing carbon market, managing industrial economic impacts, and reconciling carbon pricing with existing energy subsidies and sectoral regulations.
Throughout the lecture, Dr. Guntur emphasized that carbon taxation is not merely a fiscal instrument but a crucial pillar of Indonesia’s sustainability transition. The conversation closely aligned with global themes such as Climate Action (SDG 13), Industry, Innovation & Infrastructure (SDG 9), and Responsible Consumption and Production (SDG 12).
This session significantly enriched students’ understanding of how sustainability, public policy, and economic strategy intersect—further strengthening the real-world relevance of their learning.
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