Indonesia, which industrial sector dominates its economy faces more responsibilities to adjust their Greenhouse Gas (GHG) emissions as they committed to reduce its national emission up to 29% below business-as-usual (BAU) in 2030. The purpose of this study is aimed to conduct comprehensive research on impact factors of industrial carbon emissions and their relationship using causal loop diagram as the first step to further develop the system dynamic approach. As a result, causal loop diagram was built to illustrates the complex system in industrial carbon emission and how the relationship between economic growth, industrial carbon emission and policies in Indonesia, such as energy conservation contributes in achieving Indonesia's emission targets.@en