Dutch Professor Calls for Flexible Carbon Tax in Indonesia

Professor Stefan Weishaar of the University of Groningen, Netherlands, urged the adoption of a flexible carbon tax during the 'Carbon and Environmental Tax' seminar held by the Faculty of Administrative Science at the University of Indonesia, Depok, on 20 October 2025. He warned that climate change has become an emergency threatening human survival.

Weishaar outlined three main instruments—Pigouvian tax, the Coase theorem approach, and emission‑trading systems—each designed to internalize pollution externalities in different ways. He argued that a carbon tax in Indonesia must be flexible, cost‑effective, politically acceptable, and calibrated to demand‑supply elasticity to avoid burdening vulnerable groups.

The proposal could inform Indonesia’s carbon‑tax policy, balancing environmental objectives with business interests and social equity. Weishaar also plans to foster research cooperation between Groningen and UI and to host a global conference on tax and environmental policy.