Qualitative Study of Carbon Tax Implementation Plan in Indonesia: Company Perceptions, Responses, and Motivation

Abstract

This study aims to analyze the perceptions, motivations, and responses of companies to the planned implementation of a carbon tax in Indonesia, as well as the factors that influence their readiness to face this policy. Case studies were conducted on PT Lestari Banten Energi (LBE) and PT Lotte Titan Chemical Nusantara (LTCN). Data were collected through semi-structured interviews and analyzed qualitatively using thematic analysis techniques. The results showed that there are significant differences in perceptions, motivations, and responses between the two companies. These differences have an impact on the adaptation strategies adopted by both companies.  PT LBE focuses on investing in low-carbon technologies and diversifying energy sources, while PT LTCN emphasizes energy efficiency and the use of renewable energy. Factors influencing companies' readiness to face the carbon tax include management commitment, corporate culture, financial resources, technical capabilities, government regulations, incentives and support, as well as market and consumer pressures. This research provides important implications for the design of carbon tax policies in Indonesia, including the importance of different policy designs for different sectors, the provision of adequate incentives and support, and policy certainty.