Jakarta, July 2025 – The industrial sector is a driving force behind Indonesia’s economic growth. However, behind the economic growth reflected in GDP growth, there are greenhouse gas emissions resulting from high-energy-intensive industrial activities. Transforming the industrial sector toward a low-carbon industry is imperative.
Apit Priya Nugraha, Head of the Ministry of Industry’s Green Industry Center, stated at the Big Idea Forum, “Decarbonizing Industry: Building the Future of Sustainable Economic Transformation,” that transforming industry toward a low-carbon industry will open up opportunities for resilience and relevance, enabling it to remain the backbone of the Indonesian economy going forward.
“Decarbonizing the industrial sector is not a burden, but an opportunity to tap into a more sustainable and competitive market,” he said.
This initiative is not without challenges. Amidst the industrial sector’s interest in adopting green industry practices, one of which is the independent use of renewable energy, the current policy framework still imposes strict limitations, even though the industry is capital sufficient. As a first step, the Green Industry Center, in collaboration with the Institute for Essential Services Reform (IESR) and the World Resources Institute (WRI) Indonesia, is developing a roadmap for decarbonizing Indonesian industry. In the first phase, this roadmap includes nine high-emission industrial sectors: cement, iron and steel, fertilizer, pulp and paper, textiles, glass and ceramics, food and beverages, and automotive (transportation). The government will periodically add additional industrial sectors.
Shinta Kamdani, Chairperson of the Indonesian Employers’ Association (APINDO), stated that from the business and industry perspective, there is a need for decarbonization to meet the increasing market demand for environmentally friendly and low-emission products.
“To meet this demand, industry will naturally move organically (to decarbonize). The question now is, are the resources available to meet this need? For example, if we need clean electricity from renewable energy, even though we have the resources to install 100% solar power plants, regulations allow us to install a maximum of 35% solar power plants,” Shinta said.
In smaller-scale industries, issues such as access to information and assistance related to industrial decarbonization are a priority.
Fabby Tumiwa, Chief Executive Officer (CEO) of IESR, emphasized that a comprehensive policy framework is needed to provide confidence, both for entrepreneurs and the executive branch, in creating derivative regulations.
“In addition to a clear policy framework, public communication, assistance, and easy and comprehensive access to information must also be encouraged so that more industry players of all sizes participate in industrial decarbonization initiatives,” said Fabby.
Rahayu Saraswati, a member of the Indonesian House of Representatives (DPR RI), stated that multi-stakeholder collaboration is needed to ensure the initiative runs smoothly.
“A future-proof perspective is needed, so that current strategies and decisions can be contextualized to future situations and must be implemented by all parties, including MSMEs and Regional Governments,” she said.
This echoes the view of INDEF’s Director of Big Data Development, Eko Listiyanto, who stated that with the increasing flow of information, consumer awareness of sustainability, low-carbon, and environmentally friendly issues is increasing.
“Therefore, transforming into a low-emission industry is an investment in long-term business sustainability,” said Eko.
