Climate Policies in Indonesia’s Development Agenda: Why a Carbon Tax is Marginalised


  • Rakhmindyarto Rakhmindyarto Ministry of Finance of The Republic of Indonesia



Drawing on the results of an exploratory qualitative study based on in-depth interviews involving government executives, politicians, business players, and non-government organisations (NGOs), this paper explores climate policies in Indonesia’s national development agenda, including whether a carbon tax could be one of the national priority policy goals. The results suggest that there is heterogeneity in how Indonesian key stakeholders perceive climate policies in Indonesia’s development agenda. Indonesian stakeholders are cognisant of the adverse impacts of climate change on social, economic, and environmental aspects. They also acknowledge that having clear and sound climate mitigation policies is required to achieve Indonesia’s ambitious GHG emissions reduction target. However, Indonesia’s development policy goals are focusing on economic growth, in particular boosting infrastructure investments, reducing poverty and inequality, and job expansion. This makes climate policies are compromised and has created conflicts between Indonesia’s development agenda and its commitment to deal with climate change issues. Overall, the study finds that climate policies are incompatible with Indonesia’s development agenda, therefore a carbon tax is placed at the bottom of the national policy goals.


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