THE IMPACT OF CARBON TAX AND DECARBONIZATION ON CARBON TAX REVENUE IN INDONESIA

This study aims to analyze the impact of carbon tax and decarbonization on carbon tax revenue in Indonesia. The object of this research is basic materials sector companies listed on the Indonesia Stock Exchange (IDX) during the 2021-2024 period. The approach used is quantitative with data analysis using the Structural Equation Modeling-Partial Least Squares (SEM-PLS) version 3 method. A sample of 105 observation data was obtained through purposive sampling technique from a total population of 403 companies. The data used is secondary data sourced from sustainability reports and company annual reports. The results showed that carbon tax has a positive and significant effect on carbon tax revenue, which indicates that the application of carbon tax is effective as a source of tax revenue, and decarbonization has no significant effect on carbon tax revenue, because reducing emissions has not had a direct impact on tax revenue in the observation period. This study concludes that carbon tax policy optimization needs to be continued. The government is also advised to design a fiscal strategy that is integrated with decarbonization efforts in order to achieve a balance between economic growth and environmental sustainability.