EXPLORING THE EFFECTS OF CARBON TAX IMPLEMENTATION PLAN ON ENVIROMENTAL PRACTICES IN THE COAL INDUSTRIES OF INDONESIA COMPARING TO JAPAN AND INDIA (2019-2023)

This paper investigates the potential impact of carbon tax implementation on environmental sustainability within Indonesia’s coal industry, drawing comparisons with Japan and India over the 2019–2023 period. As climate change intensifies due to greenhouse gas emissions, carbon taxation emerges as a policy tool aimed at reducing dependency on fossil fuels and promoting cleaner energy. The study adopts a qualitative comparative method, analyzing coal production and emission data alongside regulatory developments in the three countries. Japan and India have implemented explicit and implicit forms of carbon taxes respectively, demonstrating emission reductions even amid rising coal production. Indonesia, currently in the preparatory phase of its carbon tax under the HPP Law, shows significant potential for emission control through structured carbon pricing. The findings emphasize that successful carbon tax implementation, supported by stakeholder engagement and renewable energy investment, can serve as a double-dividend strategy—boosting environmental protection and economic transformation. Lessons from Japan and India offer valuable policy insights for Indonesia to strengthen its path toward a low-carbon economy.