Thesis Published

THE IMPACT OF THE EUROPEAN UNION’S CARBON BORDER ADJUSTMENT MECHANISM POLICY ON INDONESIA’S STEEL INDUSTRY

Ahmad Ramdhani, Fauzi
Abstract
This study analyzes the influence of the European Union's Carbon Border Adjustment Mechanism (CBAM) on the Indonesian steel industry with a focus on the potential impact and domestic policy adjustment mechanism. Using a descriptive qualitative approach in the form of case studies of the Indonesian steel sector, data was collected through literature analysis, policy documents, official reports, and corporate announcements. Because CBAM is in a transition phase, this study does not claim actual economic impacts; rather, it examines initial indicators in the form of changes in policy orientation, initiation of instruments (e.g., carbon trading and carbon tax discourse), and corporate technology initiatives that reflect the anticipatory adjustment process. The results show that CBAM functions as a soft power instrument that generates normative pressures driving initial policy adjustments and shifts in industry strategies. In the short term, this pressure is seen in improving anticipatory policies and corporate readiness; in the long term, CBAM has the potential to accelerate structural transformation towards low-carbon production. From the perspective of the Islamization of science, the research emphasizes the relevance of the principles of maslahah and 'adl as a normative framework to assess the justice of the impact of climate transition for developing countries. This research contributes to the study of international relations by integrating the dimensions of Islamic ethics in the analysis of global environmental policy.
Publication Details
InstitutionUniversitas Darussalam Gontor
DepartmentHubungan Internasional
KeywordsCarbon Border Adjustment Mechanism, Steel Industry, European Union, Environmental Policy, Soft Power, Policy Adjustment
Item ID7867
Deposited12 Nov 2025 02:42
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