Regional Impact Analysis of Carbon Tax Implementation on Indonesia’s Coal Power Plant with Interregional Input-output Method

The excessive use of greenhouse gases (mainly carbon dioxide) causes a global emission gases. This has eventually brought climate change and warming, that will affect the human life standard. Also it several economical impacts such as increasing mitigation budget for anticipating problems by applying tax one strategies to reduce emissions. Carbon is additional economic instrument high possibility be implemented in Indonesia help its future low development especially on energy sector. Under circumstance, this paper aims predict possible impact implementing implementation Coal Power Plant (CPP) revenue recycling 6 regions i.e. Sumatera, Jawa, Bali Nusa Tenggara, Kalimantan, Sulawesi, Maluku Papua. IRIO (InterRegional InputOutput) model six been developed based Central Bureau Statistics with seventeen sectors 2016 evaluate taxes price 2,1 USD/ton CPP show scenarios distribution revenues output, wages, GRDP. results e 2.1USD/ton give extra around 241 Billion Rupiah nationally 73%, 15%, 7%, 3%, 2%, 1% from Java, Bali-Nusa Maluku-Papua, respectively. Through recycling, those values could increase total GDRP per region 451, 100, 169 Rupiah, recyling option each 17 are also identified study spesific characteristics region. In conclusion, result government determine strategy, so boost regional economy. Based results, recommends conduct an intensive monitoring evaluation policies Java Sulawesi.