Indonesia Accelerates Industrial Decarbonisation Across Nine Sectors Toward 2050 Net Zero

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Ecobiz.asia – Indonesia has identified nine industrial subsectors as priorities for decarbonisation as the government targets net-zero emissions in the industrial sector by 2050, a decade ahead of the country’s national 2060 target.

The priority sectors are cement, metals, ammonia, pulp and paper, textiles, ceramics, chemicals, food and beverages, and transport equipment. Dewi Muliana, Head of the Green Industry Center at the Ministry of Industry, presented the roadmap during Indonesia Sustainable Energy Week (ISEW) 2026 in Jakarta on Thursday (August 20, 2026).

The industrial sector accounts for around 34% of Indonesia’s greenhouse gas emissions and an estimated 20% to 25% of air pollution, according to the ministry.

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Indonesia’s industrial decarbonisation roadmap combines several measures, including energy and material efficiency, fuel and material substitution, production-process improvements, electrification, renewable energy, carbon capture, utilisation and storage (CCUS), and carbon offsets.

The approach is designed to address emissions from both energy consumption and industrial processes. Electrification and renewable energy, for example, can reduce emissions from fossil-fuel-based equipment, while fuel substitution could involve the use of biomass or hydrogen.

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For hard-to-abate industries such as cement, metals, chemicals and ammonia, the roadmap also includes CCUS to address emissions that are difficult to eliminate through energy efficiency or fuel switching alone.

The ministry said financing strategies will need to be tailored to the risk profile of individual projects. It also sees opportunities for aggregated projects and shared infrastructure to reduce costs and avoid requiring individual manufacturers to develop separate decarbonisation systems.

Technology providers and financial institutions are expected to support the deployment of low-carbon technologies, process modifications and maintenance. The government, meanwhile, will focus on aligning policies, targets, standards and monitoring systems.

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Industrial companies and estate operators will also need to develop their own decarbonisation programs, improve energy efficiency and aggregate infrastructure requirements where possible.

The roadmap comes as Indonesian manufacturers face growing pressure from international markets to reduce the carbon intensity of their products. The Industry Ministry said wider adoption of green-industry standards could help Indonesian companies maintain access to export markets as carbon-related requirements become increasingly important across global supply chains. ***

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