Decarbonising Indonesia’s high-value industrial sites through place-based action
Indonesia is expanding quickly – its population, economy, energy use and emissions are all on the rise.
Achieving the country’s dual goals of rapid economic growth and emissions reduction will depend, in no small part, on how its industrial and manufacturing sectors navigate the government’s greenlight for growth and changing global dynamics that incentivise low-carbon production.
Since 2020, Climateworks Centre has analysed high-value industrial sectors across Australia and Southeast Asia as catalysts in net zero transitions capable of preserving livelihoods, economic growth and international competitiveness.
We have found that collective action – collaboration between multiple industrial actors and between industry and government – is key to accelerating emissions reduction, saving valuable time and resources while creating better outcomes for business and surrounding communities. There is a strong case for this kind of collective action in Indonesia.
The Indonesian Government has taken steps to support decarbonisation of its industrial sector, including top-down initiatives to map sectoral pathways, create a mechanism to value industrial carbon emissions, implement emissions reduction policies, strengthen circular economy practices and develop ‘green’ industry standards.
This type of overarching direction and agenda-setting for the sector is critical for its decarbonisation. But so too is more localised action, which is where Climateworks Centre’s place-based approach to industrial decarbonisation fits in.
Climateworks Centre’s Net Zero Industrial Precinct (NZIP) program offers a place‑based approach to accelerate industrial decarbonisation. NZIPs enable clusters of co‑located industrial facilities to transition collectively through shared renewable energy and clean heat, enabling infrastructure and low‑carbon technologies.
This report outlines the first phase of the Indonesia NZIP program, focused on identifying candidate sites for possible pilot implementation.
Using a four‑part methodology – industrial, geographic, technical and stakeholder assessments – Climateworks Centre analysed thousands of facilities and estates across seven priority supply chains: iron and steel, cement, textiles, chemicals, aluminium and alumina, pulp and paper, and nickel.
From this analysis, 20 potential precincts were listed, then narrowed to 10 based on technical feasibility and emissions-reduction potential.
Stakeholder engagement further refined the selection to five precincts for pilot consideration:
- Cilegon (Banten): Indonesia’s largest steel hub, with strong potential for energy efficiency, electrification, fuel switching, hydrogen and CCS.
- Gresik (East Java): A mixed‑industry precinct with energy efficiency and renewable energy initiatives as well as emerging green hydrogen projects.
- Morowali (Central Sulawesi): A strategic nickel and steel hub with plans for large‑scale renewable deployment.
- Tuban (East Java): Cement‑focused precinct with opportunities for alternative fuels and CCS.
- Halmahera (North Maluku): A key node in the EV battery supply chain, requiring significant intervention to reduce coal reliance.
These precincts represent high‑impact opportunities to cut emissions, attract investment and position Indonesia as a regional leader in low‑carbon industrial production.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
