Adopting Indirect Carbon Pricing Strategies for Indonesia: Insights from Global Practices Using a Bibliometrics and Systematic Literature Review

Indonesia faces significant challenges in reducing greenhouse gas (GHG) emissions while maintaining economic growth. Carbon pricing, encompassing carbon taxes and Emission Trading Systems (ETS), has emerged as a vital tool in achieving global decarbonization goals. This study aims to assess the adaptation of indirect carbon pricing strategies in Indonesia by synthesizing insights from 27 countries using a Systematic Literature Review (SLR) of 315 scholarly articles. The research identifies Indonesia's unique economic, social, and regulatory challenges, including dependency on fossil fuels, limited renewable energy infrastructure, and governance gaps. The study highlights the effectiveness of indirect carbon pricing mechanisms, such as renewable energy subsidies, energy efficiency programs, and public awareness initiatives, in addressing dispersed emissions from transportation, agriculture, and residential energy use. Additionally, the integration of carbon pricing with complementary policies, including sector-specific benchmarks and international carbon trading, enhances the potential for successful implementation. By adapting best practices from countries like Canada, Sweden, and Germany, Indonesia can establish hybrid carbon pricing models tailored to its context. These strategies can accelerate renewable energy investments, promote economic diversification, and support the country's goal of reducing GHG emissions by 29-41% by 2030 and achieving net-zero emissions by 2060. This research provides actionable recommendations for policymakers and stakeholders to ensure sustainable energy transitions and global climate commitments.