Indonesian Government Prepares Roadmap for Clean Net-Zero Industry by 2050

Jakarta, August 22, 2025 - Indonesia is committed to achieving a net-zero emissions target by 2060 or sooner. To do so, economic growth must align with climate commitments. In 2023, the industrial sector contributed 34 percent of national emissions. At the same time, this sector also drives the economy, contributing 18.9 percent to the Gross Domestic Product (GDP) and employing over 19.3 million people. Low-carbon economic practices can boost environmental resilience and drive economic growth, with an estimated average GDP increase of up to 5.11 percent by 2060.

To realize a competitive and low-emission national industry, the Ministry of Industry, the World Resources Institute (WRI) Indonesia, and the Institute for Essential Services Reform (IESR) have formulated an Industrial Decarbonization Roadmap. This roadmap aims to achieve net-zero emissions by 2050, which is earlier than the national target of 2060. During the Annual Indonesia Green Industry Summit (AIGIS) 2025 (August 20-22), Minister of Industry Agus Gumiwang Kartasasmita affirmed that the government is encouraging industrial transformation through the decarbonization roadmap, industrial emission reduction policies, the Carbon Economic Value (NEK) for the industrial sector, development of a green industry ecosystem, adoption of a green industry ecosystem circular economy in industry, deployment of carbon capture and utilization (CCU) technologies, and strengthening the Green Industry Standards (SIH).

The Decarbonization Roadmap covers nine energy-intensive subsectors: cement, iron and steel, fertilizers, chemicals, pulp and paper, textiles, glass and ceramics, automotive, and food and beverages. Based on their emissions profile, 46 percent of emissions in the manufacturing industry come from direct energy generation, 16 percent from purchased electricity, and 38 percent from chemical processes in production and product applications (Industrial Processes and Product Use, IPPU).

There are five types of decarbonization programs or strategies used in the design of the Industrial Decarbonization Roadmap. The primary priority is to reduce emissions, not just neutralize them. Emission reduction strategies include energy and material efficiency, fuel and material substitution, electrification and low-carbon electricity, and process upgrades. Meanwhile, emission neutralization strategies include carbon capture, utilization, and/or storage.

According to the Head of the Ministry of Industry's Center for Green Industry, Apit Pria Nugraha, "The decarbonization roadmap has been prepared for nine industrial subsectors with significant projected emission reductions. This amounts to 66.5 million tCO2e emissions by 2035 and 289.7 million tCO2e by 2050. This document remains a living document and will be continuously updated to include sectors that are not yet covered."

At AIGIS 2025, the Ministry of Industry presented the progress of the Industrial Decarbonization Roadmap, which will result in two reports: a Technical Report to be launched in September 2025 and a Policy Report to be launched in March 2026. The Technical Report covers industrial emission reduction trajectories, optimal decarbonization strategies, impacts on product price increases, and total energy and material needs for implementing the strategies. Meanwhile, the Policy Report will include an analysis of policy gaps in technology, funding, and regulations to support the roadmap's implementation, as well as policy framework recommendations. By September 2026, The Ministry of Industry plans to issue a Ministerial Regulation on the Industrial Decarbonization Roadmap in stages for each subsector.

The Chief Executive Officer (CEO) of IESR, Fabby Tumiwa, stated that IESR participated in preparing the decarbonization roadmap for four sectors: textiles, glass and ceramics, automotive, and food and beverages.

"The industrial decarbonization roadmap is a crucial strategy to achieve President Prabowo's ambition of 8 percent economic growth. Without a transition away from fossil fuels, this ambition will be difficult to achieve amid strict global emission standards for international trade and market demand for low-emission products. Implementing the roadmap will not only ensure that Indonesian products are competitive in the export market but also attract new investment, increase productivity, reduce operational costs, and strengthen energy independence through the use of renewable energy. Another impact of a low-emission industry is that it can pave the way for the development of the green manufacturing industry and the creation of new jobs," Fabby explained.

Nirarta Samadhi, Country Director of WRI Indonesia, said that the achievement of the Industrial Decarbonization Roadmap is based on three pillars: "First, affordable and reliable low-carbon energy and materials. Second, green funding and incentives to encourage industrial transformation, such as green taxonomy, carbon pricing, and innovative financing schemes. Third, integrated policies and regulations that provide direction and create a supportive climate, such as emission standards, green product labels, and a domestic market for low-carbon products. This can only be achieved if we build a holistic green industry ecosystem where energy, financing, and regulations work in synergy."

Access the Decarbonization Roadmap document via the following QR Code:

About the Ministry of Industry's Green Industry Center

The Green Industry Center (PIH) is a technical unit under the Industrial Services Policy and Standardization Agency (BSKJI), Ministry of Industry, which plays a key role in the development and implementation of green industry in Indonesia. PIH is tasked with formulating policies, establishing standards, and facilitating the implementation of energy efficiency and emission reduction technologies in the industrial sector. Through a decarbonization roadmap, technical consultations, and mentoring, PIH encourages industry to increase competitiveness while maintaining environmental sustainability and efficient resource utilization.

About the Institute for Essential Services Reform

The Institute for Essential Services Reform (IESR) is a think tank that actively promotes and advocates for meeting Indonesia's energy needs, upholding the principles of fairness in natural resource utilization and ecological sustainability. IESR is involved in activities such as conducting analysis and research, advocating for public policy, launching campaigns on specific topics, and collaborating with various organizations and institutions.

About the World Resources Institute (WRI) Indonesia

WRI Indonesia is an independent research organization that collaborates with governments, businesses, multilateral institutions, and civil society groups to develop practical solutions that improve people's lives and ensure nature can thrive in Indonesia. We organize our work around five critical issues: Forests and Land Use, Climate, Energy, Cities and Transport, and Oceans.