Decarbonization Transformation of Industry in Indonesia

"Indonesia, as one of the largest economic centers in Southeast Asia, faces significant challenges in reducing greenhouse gas (GHG) emissions from the industrial sector. In addition to the steel industry, there are several other sectors that contribute significantly to national GHG emissions. As a tangible effort to address these issues, concrete steps are needed to carry out a comprehensive decarbonization transformation. Challenges from Various Industrial Sectors"

The industrial sector in Indonesia faces various challenges in reducing GHG emissions. In addition to the steel industry, which has been the main focus, the following sectors also have a significant impact on the environment:

Steel Industry: The steel industry uses conventional technology, including the blast furnace process that utilizes coal and coke as fuel. Approximately 20-30 million tons of carbon dioxide are produced per year.

Cement Industry: The cement industry is also a significant contributor to greenhouse gas emissions. The clinker burning process in cement production generates quite high emissions, especially through the use of fossil fuels.

Energy Industry: The energy sector, including coal-fired power generation, also has a significant impact on GHG emissions. Dependence on coal as the primary energy source remains a challenge in efforts to reduce emissions in this sector.

Chemical Industry: The production of industrial chemicals, such as ammonia production, also contributes to significant GHG emissions. The complex chemical processes involved in ammonia production require substantial energy consumption, which is largely derived from fossil fuels.

Transportation Industry: The transportation sector, including land, air, and sea transport, also has a significant contribution to GHG emissions. Dependence on fossil fuels in the transportation sector remains a challenge in efforts to reduce emissions from this sector.

Textile, Pulp and Paper Industry: The textile, pulp, and paper sectors also contribute significantly to GHG emissions. The dyeing and finishing processes in the textile industry generate quite high GHG emissions. Pulp processing and paper production are also sources of GHG emissions, particularly through the combustion of fuel.

Joint Efforts for Decarbonization
To address this challenge, cooperation between the government, industry players, and other stakeholders is needed to design and implement effective decarbonization strategies. The steps that can be taken include:

• The application of clean and environmentally friendly technology in the production process.
• Increasing energy efficiency and the utilization of renewable energy sources.
• "The application of regulations that support and encourage decarbonization transformation."
• Investing in research and development for more sustainable technological innovation.

Future prospects
"Although there are still many challenges to overcome, especially in terms of costs and barriers from conventional industries, the prospects for industrial decarbonization in Indonesia are very important. With strong commitment and concrete actions taken by all relevant parties, Indonesia has great potential to become a leader in the transformation towards a more sustainable and environmentally friendly economy."

Greenhouse Gas Emissions from the Steel Industry in Indonesia
One of the key sectors that is the focus of decarbonization efforts is the steel industry. With a significant contribution to national GHG emissions, the steel industry requires a comprehensive transformation to reduce its negative impact on the environment.

Main Challenges Faced
The main challenge in reducing GHG emissions from the steel industry in Indonesia is the dependence on conventional technology that produces high emissions, particularly through the blast furnace process that uses coal and coke as its fuel.

About 80% of steel production in Indonesia still uses this technology, which produces 20-30 million tons of carbon dioxide per year.


Urgency of Action: Emissions and Their Impact
GHG emissions from the steel industry contribute about 7% of the total emissions from the national industry.
The figure has become a serious concern considering the rapid economic growth in Indonesia and its impact on global climate change. In addition, the energy-intensive steel industry also contributes to local environmental crises, including air and water pollution.


Decarbonization Efforts: Strategies and Actions
To address these challenges, various decarbonization efforts have been proposed and partially implemented. One of them is by replacing conventional steel production technology with more environmentally friendly technology, such as Electric Arc Furnace (EAF) which uses recycled steel and has a lower carbon footprint.

Increasing energy efficiency is also a key focus of decarbonization efforts. Measures such as the use of renewable energy and maximizing steel recycling will not only reduce greenhouse gas emissions but also decrease dependence on scarce natural resources.

Conclusion

The decarbonization transformation of the industry in Indonesia requires the cooperation of all stakeholders to address the challenges of greenhouse gas emissions from various sectors. The steel industry in Indonesia plays an important role in the efforts of decarbonization and climate change mitigation. Through the use of cleaner technologies, increased energy efficiency, and strong regulatory support, the steel industry can serve as an example for other industrial sectors facing the challenges of global climate change. With the right steps and strong commitment, Indonesia can become a leader in the transformation towards a sustainable and environmentally friendly economy.

Source : Peterson Indonesia 

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