Dissemination Workshop of Indonesia Industry Decarbonization Roadmap and Policy Recommendations

Replay Event

Background

The industrial sector in Indonesia represents a crucial pillar of the country’s economy, contributing significantly to its gross domestic product and providing employment opportunities to more than 278 million of its people. The industry sector also serves as the largest energy consumers in the country which consumed about 35% of the country’s final energy consumption in 2020. Unfortunately, due to its heavy reliance on fossil fuel, the sector hence become the second largest emitter after transportation, with more than 214.6 MtCO2eq emitted in a year.

With these backgrounds, IESR and LBNL conducted a joint study to formulate an industry decarbonization roadmap in Indonesia. The study focuses on five selected industries that are considered critical to Indonesia’s economic growth and are classified as energy-intensive industries. These selected industries are cement, iron and steel, pulp and paper, ammonia, and textiles. Together, the five industries dominate the sector’s end-use energy consumption of more than 40% in 2021.

Based on the latest findings of this study, emissions from the five industries are projected to have a significant increase if no decarbonization measures are taken. Previously in 2021, five industries’ emissions reached 101.5 MtCO2eq and will continue to multiply more than 1.4 times in 2060 under the business-as-usual scenario. Such a huge increase will undoubtedly fail the agreed pledge to keep the global average temperature increase well below 2oC. Hence, decarbonizing this sector is of paramount importance for Indonesia to fulfill its commitment to the Paris Agreement and reach its net zero emissions (NZE) target by 2060 or sooner. Other than that, decarbonizing the industry sector can also improve the country’s international market competitiveness towards stringent environmental regulations for imported goods’ and carbon pricing mechanisms which have been effective in several export destination countries, such as the European Union. 

To continue the discussion about the industrial decarbonization roadmap and considering the success of the first focus group discussion held in June 2023, IESR and LBNL would like to invite representatives from policymakers, industries, business associations, research institutes, and non-governmental organizations to join the hybrid dissemination workshop on Indonesia industry decarbonization roadmap and policy recommendation. The event will be held hybridly via Zoom on October 25, 2023. The workshop is aimed at actively gathering feedback on the industry decarbonization roadmap as well as discussing the strategic steps required to implement the roadmap in Indonesia’s future development strategies.

Objective

There are several objectives of this workshop:

• Disseminate and share information on Indonesia’s industry decarbonization roadmap with relevant key stakeholders, including policymakers, industry actors, associations, and research institutes,
• Receive feedback as well as validate Indonesia’s industry decarbonization roadmap  from relevant key stakeholders,
• Discuss essential and actionable policies required to implement the decarbonization roadmap for the Indonesian industry at a national scale,
• Identify future challenges, opportunities, and support from relevant key stakeholders,
• Discuss collaboration opportunities to support decarbonization and sustainable growth in five critical industries in Indonesia

Presentation

Status Quo of Industry Appetite towards Decarbonization in Indonesia – Farid Wijaya

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Industry Decarbonization Roadmaps for Indonesia – Hongyou Lu

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Indonesian Industry Decarbonization Policy Roadmaps – Stephane de la Rue du Can

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Realizing NZE Target in Industry Sector in Indonesia – Yudas Agung Santoso

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