Industry Decarbonization Roadmaps for Indonesia: Opportunities and challenges to net-zero emissions

This in-depth study, conducted jointly by the Lawrence Berkeley National Laboratory and the Institute for Essential Service Reforms (IESR) of Indonesia developed sector-specific roadmaps for deep decarbonization of five key industry sectors in Indonesia: iron and steel, cement, ammonia, pulp and paper, and textile industries, which are responsible for 70% of the industrial emissions in Indonesia. We analyzed the current status of the studied industries and analyzed different decarbonization pathways that can substantially reduce the CO₂ emissions of Indonesia's industry sector. The results of the collaboration demonstrate that it is technically feasible to mitigate 100 million tonnes (Mt) of CO₂ emissions from today's level, or 160 MtCO₂ emissions from the reference scenario, and achieve near-zero CO2 emissions in the studied Indonesia’s industrial sectors by 2060, as well as 2050 in an accelerated mitigation scenario.

Achieving industrial decarbonization in Indonesia requires adopting a multifaceted policy approach. It is important to establish clear and credible emission targets at the sectoral level, develop a policy framework that encourages fuel switching and energy efficiency investment, create a new market for material efficiency, and drive investment in research, development, innovation, and demonstration projects, as well as prepare the workforce with the skills, knowledge, and capabilities.