Indonesia accelerates industrial decarbonisation to meet net-zero ambitions

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1. https://en.antaranews.com/news/395233/indonesia-drives-industry-decarbonization-to-stay-within-15c – Please view link – unable to able to access data
2. https://en.antaranews.com/news/395233/indonesia-drives-industry-decarbonization-to-stay-within-15c – Indonesia’s Industry Ministry is advancing industrial decarbonisation to maintain global warming within 1.5°C, reaffirming its net-zero emissions target for 2050. The decarbonisation roadmap, previously launched by the government, aligns with the 1.5°C pathway and outlines significant emissions reductions by 2035 and 2050. The plan targets heavy-emitting sectors, including cement, iron and steel, fertilisers, chemicals, pulp and paper, textiles, glass and ceramics, automotive, and food and beverages. The alignment with the 1.5°C threshold also strengthens Indonesia’s access to financing from international institutions, which increasingly prioritise low-carbon industrial pathways. Companies with lower emissions are expected to secure transition financing and long-term contracts more easily, as energy-transition efforts have become critical for maintaining export access and market competitiveness. Firms that fail to cut emissions risk higher costs or losing bids, as the European Union’s Carbon Border Adjustment Mechanism (CBAM) and Scope 3 requirements from global Original Equipment Manufacturers (OEMs) demand low-carbon supply chains.
3. https://iesr.or.id/en/indonesian-government-prepares-roadmap-for-clean-net-zero-industry-by-2050/ – Indonesia is committed to achieving its net-zero emissions target by 2060 or sooner. To do so, economic growth must align with climate commitments. In 2023, the industrial sector contributed 34% of national emissions. At the same time, this sector also drives the economy, contributing 18.9% to the Gross Domestic Product (GDP) and employing over 19.3 million people. A low-carbon economy can improve environmental sustainability and boost economic growth, with an estimated average GDP increase of up to 5.11% by 2060. To realise a competitive and low-emission national industry, the Ministry of Industry, the World Resources Institute (WRI) Indonesia, and the Institute for Essential Services Reform (IESR) have formulated an Industrial Decarbonisation Roadmap. This roadmap aims to achieve net-zero emissions by 2050, which is earlier than the national target of 2060. During the Annual Indonesia Green Industry Summit (AIGIS) 2025 (August 20-22), Minister of Industry Agus Gumiwang Kartasasmita affirmed that the government is encouraging industrial transformation through the decarbonisation roadmap, fiscal incentives, ease of investment, and resource efficiency regulations.
4. https://wri-indonesia.org/en/news/indonesian-government-prepares-roadmap-clean-net-zero-industry-2050 – Indonesia is committed to achieving a net-zero emissions target by 2060 or sooner. To do so, economic growth must align with climate commitments. In 2023, the industrial sector contributed 34% of national emissions. At the same time, this sector also drives the economy, contributing 18.9% to the Gross Domestic Product (GDP) and employing over 19.3 million people. Low-carbon economic practices can boost environmental resilience and drive economic growth, with an estimated average GDP increase of up to 5.11% by 2060. To realise a competitive and low-emission national industry, the Ministry of Industry, the World Resources Institute (WRI) Indonesia, and the Institute for Essential Services Reform (IESR) have formulated an Industrial Decarbonisation Roadmap. This roadmap aims to achieve net-zero emissions by 2050, which is earlier than the national target of 2060. During the Annual Indonesia Green Industry Summit (AIGIS) 2025 (August 20-22), Minister of Industry Agus Gumiwang Kartasasmita affirmed that the government is encouraging industrial transformation through the decarbonisation roadmap, industrial emission reduction policies, the Carbon Economic Value (NEK) for the industrial sector, development of a green industry ecosystem, adoption of a green industry ecosystem circular economy in industry, deployment of carbon capture and utilisation (CCU) technologies, and strengthening the Green Industry Standards (SIH).
5. https://aseanenergy.org/publications/net-zero-roadmap-for-indonesias-steel-industry/ – Indonesia has pledged to achieve net-zero greenhouse gas (GHG) emissions by 2060. To meet this target, the steel sector, a major source of industrial emissions in Indonesia, must see its emissions peak and begin to decline. With the dominance of carbon-intensive blast furnace-basic oxygen furnace (BF-BOF) steelmaking and continued investment in new BF capacity, decarbonising Indonesia’s steel sector will be particularly challenging. This report provides an overview of steel production, energy use, and emissions trends in Indonesia and presents a data-driven roadmap for deep decarbonisation through to 2060. It evaluates multiple technology and policy pathways through scenario analysis and outlines key milestones for 2030, 2040, 2050, and 2060. The report concludes with actionable policy recommendations for the Indonesian government, steel producers, consumers, and other relevant stakeholders.
6. https://www.reuters.com/business/environment/indonesia-can-reach-net-zero-emissions-before-2050-president-says-2024-11-20/ – Indonesian President Prabowo Subianto announced at a G20 forum that Indonesia could achieve net-zero emissions before 2050—ten years earlier than previously targeted. He detailed plans to retire all coal and fossil fuel power plants within the next 15 years, ahead of the initial 2056 deadline. Additionally, Indonesia aims to build 75 gigawatts (GW) of renewable energy capacity within that same period. Highlighting the country’s geographical advantage near the equator, Prabowo expressed confidence in utilising ample solar energy. Despite being a major emitter and the largest thermal coal exporter, Indonesia is also home to the third-largest rainforest globally. Currently, over half of its more than 90 GW installed power capacity comes from coal, while less than 15% is sourced from renewables.
7. https://www.reuters.com/business/energy/indonesia-build-75-gw-renewable-energy-next-15-years-cop29-envoy-says-2024-11-12/ – Indonesia plans to develop 75 gigawatts (GW) of renewable energy over the next 15 years, as part of a broader 100 GW energy expansion initiative under President Prabowo Subianto’s new administration, according to Indonesia’s COP29 envoy, Hashim Djojohadikusumo. This strategy aligns with the country’s commitment to achieve carbon neutrality by 2060, replacing coal-fired power plants with renewable sources such as solar, hydro, geothermal, and nuclear. Currently, Indonesia has over 90 GW of installed capacity, heavily reliant on coal, with renewables contributing less than 15%. The plan also involves a 70,000 km green energy transmission network being developed by state utility PLN. Additionally, Indonesia aims to implement carbon offset projects and reforest 12.7 million hectares of degraded land, potentially with international financial support including interest from the Bezos Earth Fund. Despite its renewable potential, Indonesia has struggled to attract investment due to coal subsidies making renewables less competitive.