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Author	Mr JERY SATRIA BAGAS PUTRA
Organisation/Institution	Faculty of Law Universitas Atma Jaya Yogykarta
Country	INDONESIA
Panel	Tax Law
Title	Reconceptualizing the Indonesian Carbon Tax: A Conceptual and Comparative Study on Upstream vs. Downstream Models
Abstract	The promulgation of the Law on Harmonization of Tax Regulations introduced a new form of taxation: the Carbon Tax. Its ratio legis is the achievement of Indonesia's national targets, as enshrined in its Nationally Determined Contribution (NDC), with the objective of mitigating greenhouse gas emissions. The initial imposition of the tax is concentrated on an exceptionally narrow downstream basis, restricted exclusively to coal-fired Steam Power Plants (PLTU). This regulatory framework not only impedes the achievement of NDC targets but also reveals legal gaps that cause juridical stagnation in the carbon tax's current implementation. This model creates significant administrative complexities, as it necessitates the development of a precise Monitoring, Reporting, and Verification (MRV) system on a per-facility basis. This institutional unpreparedness regarding MRV is one of the primary reasons for the policy's postponement. This article aims to analyze the extant carbon tax regulations in achieving NDC targets and to recommend a reconceptualization involving broadening the tax base. The methodology employed is doctrinal legal research, utilizing comparative and conceptual approaches. The analysis indicates the need to expand beyond the narrow downstream model restricted to PLTU. Sweden, for instance, has successfully administered an upstream tax since 1991 with administrative efficiency, as its mechanism is integrated into the pre-existing fuel excise system. This design effectively obviates the need for complex per-facility MRV and automatically broadens the tax base to cover significant emitters in other sectors, notably transportation. Conversely, Singapore utilizes a downstream model with a broad tax base, covering approximately 80% of its total national emissions by targeting large industrial sectors. This study concludes that the ideal model for Indonesia is a hybridization of an upstream model with the tax point placed on fossil fuel producers or importers—and a broad-based downstream model, offering a superior solution for actualizing the national decarbonization commitment.
Biography	Bibianus Hengky Widhi Antoro is a lecturer and the Head of the Center for Legal Aid and Consultation at the Faculty of Law, Universitas Atma Jaya Yogyakarta. He specializes in the administrative law, tax law and state finance law. Mr. Antoro has extensive practical experience serving as a legal expert for government bodies in drafting regulations and policies, including policies related to public finance mechanisms and environmental management. His research background is directly relevant to fiscal environmental policy, with key studies focusing on fiscal decentralization and tax policy formulation, state finance law, and Good Environmental Governance for pollution control. His primary research interests include environmental regulation, the development of fiscal instruments for climate mitigation, and the administrative law frameworks necessary for implementing environmental policies such as carbon taxation. Jery Satria Bagas Putra is a researcher at the Center for Legal Aid and Consultation at Universitas Atma jaya Yogyakarta, specializing in tax law and environmental law. He has authored several articles focusing on the legal frameworks governing taxation and environmental protection in Indonesia. This specialized background provides him with key insights into the legal framework of environmental fiscal policy. A recent article by both authors, "fiscal decentralization through meaningful participation: a solution to rural and urban land and building tax policy formulation in indonesia," was accepted at the 3rd aphtn-han national conference