Jakarta, INTI - The transition toward green industry has become one of the key initiatives advanced by Agus Gumiwang Kartasasmita during his tenure as Indonesia’s Minister of Industry. Through decarbonization roadmaps, carbon capture technology development, and the establishment of green industry standards, the Ministry of Industry has laid the groundwork for more sustainable industrial growth while strengthening Indonesia’s competitiveness in global markets.

One tangible outcome is the pilot project for Carbon Capture and Utilization (CCU) technology at PT Petrokimia Gresik. Developed in collaboration with technology providers from Japan and Taiwan, the technology reportedly reduced carbon dioxide emissions by more than 95% during a six-month trial, with the results verified by Sucofindo in 2025.

Beyond reducing emissions, the technology has the potential to produce up to one million tons of soda ash annually. This output is projected to help replace soda ash imports while generating approximately US$200 million, equivalent to Rp3.6 trillion, in additional annual revenue for the company.

The achievement has attracted renewed attention following a call by Presidential Special Envoy for Climate and Energy Hashim Djojohadikusumo to expand similar technology to other industries, including coal-fired power plants.

“It turns out there is technology from Japan, Taiwan, and elsewhere that is being used at Petrokimia Gresik,” Hashim said at the Investor Daily Summit 2026 in Jakarta on Wednesday, October 7, 2026.

According to Hashim, the government is preparing an incentive scheme for companies that install the technology. Its wider adoption is expected to reduce emissions without requiring industries to suspend their operations.

Industrial Decarbonization Roadmap Targets Net Zero by 2050

Under Agus Gumiwang’s leadership, the Ministry of Industry accelerated the manufacturing sector’s net-zero emissions (NZE) target to 2050, a decade ahead of Indonesia’s national target of 2060.

The target is supported by decarbonization roadmaps covering nine major industrial subsectors with significant emissions: cement, ammonia fertilizer, metals, pulp and paper, chemicals, textiles, ceramics and glass, food and beverages, and automotive.

The roadmaps encompass six transformation pillars, including energy and material efficiency, fuel substitution, electrification, renewable energy adoption, and carbon capture. Companies in the relevant subsectors are also required to report their greenhouse gas emissions periodically through the National Industrial Information System (SIINas).

Agus also initiated the Annual Indonesia Green Industry Summit (AIGIS) as a cross-sector collaboration platform to accelerate the transition toward low-carbon industry. At AIGIS 2025, he emphasized that economic growth must go hand in hand with emissions reductions.

“Economic growth must align with our commitment to reducing carbon emissions, not the other way around,” Agus said.

Strengthening Green Industry Regulations and Standards

Alongside promoting technology adoption, the Ministry of Industry has strengthened the regulatory framework to ensure that the green industrial transition can be measured and implemented systematically.

Since 2020, the ministry has issued 35 ministerial regulations related to green industry and 62 Green Industry Standards. Of these standards, 50 were issued during Agus Gumiwang’s tenure.

The ministry also introduced Minister of Industry Regulation No. 26 of 2025, which governs green industrial estate standards. In June 2026, the ministry’s emissions validation and verification body, BBSPJIA, obtained accreditation from the National Accreditation Committee and issued its first emissions verification statement.

These measures are important for improving the credibility of industrial emissions measurement and helping companies meet global market requirements for lower-carbon products.

Agus also initiated the Green Industry Service Company (GISCO), an ecosystem designed to connect industrial companies, technology providers, and financial institutions to accelerate green investment.

The initiative aims to help businesses overcome the financial barriers associated with adopting low-carbon technologies. Planned support includes technical assistance, concessional financing, and grants, with the World Bank reported to be supporting the initiative’s development.

“GISCO serves as a bridge between financing institutions, technology providers, and industrial players to facilitate the green industrial transition through affordable financing,” Agus said.

EU Carbon Regulations Increase Pressure for Industrial Decarbonization

The need for financing has become more pressing as the European Union’s Carbon Border Adjustment Mechanism (CBAM) enters its implementation phase in 2026, increasing pressure on industries to reduce the carbon footprint of their exported products.

Fabby Tumiwa, Chief Executive Officer of the Institute for Essential Services Reform (IESR), believes decarbonization could create opportunities for Indonesia to strengthen its industrial competitiveness in international markets.

Meanwhile, the development of a circular economy and green industries is projected to generate additional economic value of between Rp700 trillion and Rp1 quadrillion by 2030, while potentially creating millions of jobs if the opportunities can be fully realized.

These initiatives demonstrate that the green industry agenda extends beyond emissions reductions. It also encompasses production efficiency, value creation, and stronger competitiveness for Indonesia’s manufacturing sector.

The next challenge is to ensure that the roadmaps, standards, technologies, and financing mechanisms already established can be implemented on a wider scale, delivering tangible economic benefits while accelerating Indonesia’s transition toward a low-carbon industrial economy.

Conclusion 

Indonesia’s green industry transition is advancing through carbon capture technology, industrial decarbonization roadmaps, stronger regulations, and green financing initiatives. With CCU technology reportedly reducing CO₂ emissions by more than 95% at PT Petrokimia Gresik, these efforts demonstrate the potential to combine environmental sustainability with industrial competitiveness, economic growth, and new job opportunities.

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