Indonesia, a major manufacturing economy, aims to align industrial growth with climate goals by targeting Net-Zero Emissions (NZE) in its industrial sector by 2050 – ten years ahead of the national target. This paper, which was commissioned by Germanwatch, reviews Indonesia’s decarbonisation pathway, including economic factors, policy frameworks, and implementation challenges such as finance access, emissions reporting, and policy coherence. It highlights the roles of civil society and international partners, particularly the Climate Club. Key findings show that although a ‘Green Industry’ framework exists, bridging the gap between policy and action is crucial. Three priorities for international collaboration are identified: developing emissions inventory systems, co-developing Carbon Capture and Utilisation (CCU) technologies, and using innovative financing instruments to encourage private investment.
The study concludes that a just transition will require greater data transparency, targeted financial support, and inclusive policymaking.
This study is accompanied by a study on industrial decarbonisation in South Africa. For a blog post that summarises both publications, see here.
