Webinar Indonesia’s Industrial Transition in 2025: Hard-to-Abate Sectors and the Net-Zero Push

Indonesia is currently drafting an Industrial Decarbonization 2050 Roadmap as a strategic instrument to support its economic growth target of 8%, in line with its commitment to achieve net-zero emissions by 2060 or earlier. The Institute for Essential Services Reform (IESR), assisting Ministry of Industry in drafting the roadmap, views industrial decarbonization not only as a climate agenda but also as an economic strategy to maintain access to export markets amid increasingly stringent global emissions standards, while simultaneously attracting new investment. Low-carbon economic practices also have the potential to strengthen environmental sustainability and drive national economic growth, with an estimated average GDP increase of up to 5.11% by 2060 (IESR, 2025).  

The Industrial Sector contributes 34% of Indonesia emissions come from industrial activities which 41% of that emission come from the 8 most energy-intensive sectors (cement, iron, & steel, chemicals, fertilizers, pulp and paper, textiles, glass & ceramics, food & beverages). The emission will continue to rise from 154.3 million tCO2e in 2023 to 319 million tCO2e in 2050 under the BaU scenario due to increasing production such as triple productions capacity of chemicals and double construction materials productions by 2050. Based on Indonesia Decarbonization Roadmap, there are five strategies such as energy and material efficiency, fuel and materials replacement, process upgrading, low-carbon power and electrification and carbon capture, utilization and storages (CCUS). Thes efforts are to achieve the targets of industrial net-zero emission by 2050 and answer the global competitiveness requirements for high-intensive industry’s products (Ministry of Industry 2025).  

These global challenges take on urgency in Indonesia, where heavy industry, rapid demand growth, and energy system constraints shape a distinct transition trajectory. Based on the report Scaling the Industrial Transition: Hard-to-Abate Sectors and Net-Zero Progress in 2025 (World Energy Forum & Accenture, 2025), technologies for decarbonizing heavy industries, such as steel, cement, chemicals, and heavy transport, are already available, but progress remains constrained at the scale-up stage, primarily due to economic, policy, and infrastructure barriers, rather than technical limitations. Key challenges now include financial viability (bankability), profitability, energy costs, policy certainty, and the readiness of supporting infrastructure. 

The study further reveals that around 50% of industrial emissions can be reduced using mature solutions, while the remainder will require further innovation, stronger policy support, and enabling infrastructure, including hydrogen and carbon capture, utilization, and storage (CCUS). 

 The global industrial transition is also uneven, or multi-speed, with developed economies and China moving ahead more rapidly, while developing countries continue to lag, particularly in terms of access to financing. For Indonesia, delays in implementing the industrial decarbonization, especially across large industrial sectors, pose significant risks. These include declining export competitiveness, missed investment opportunities, and the risk of becoming locked into a high-cost, high-emissions industrial structure. 

To answer these concerns, IESR in collaboration with World Economic Forum will host a webinar to discuss WEF report findings, its relevance to Indonesian context, and strategic recommendations to public and private sector stakeholders. It is aimed to provide insight for Indonesia’s policymakers, industry players, and financing communities in preparing economically viable transition pathways, and long-term benefits for society at large through the creation of green jobs, enhanced energy security, and sustainable economic growth. 

Objectives 

1. Inform the key findings, framing, and strategic implications of WEF’s 2025 industrial decarbonization report on Indonesian industry context.  
2. Discuss the practical meaning of “deployability” (cost, scale, and integration readiness) of the technologies for Indonesia’s hard-to-abate sectors.  
3. Identify priority enabling actions for Indonesia; especially on policy alignment, shared infrastructure, and financing structures to accelerate industrial transition while strengthening competitiveness.