Manufacturing transformation key to Indonesia’s net zero success

Three of Indonesia’s core manufacturing sectors are crucial to the nation’s new goal of reaching net zero before 2050, a new report from Monash University’s Climateworks Centre reveals.  

The report shows that the chemicals, textiles and food and beverage sectors – where energy consumption is high – stand to benefit most from implementing a range of sustainability measures. 

Petra Christi, Climateworks Senior Analyst and report lead author said the findings can act as a blueprint for the wider manufacturing industry. 

‘The benefits don’t just stop at emissions reductions. There is also scope for energy savings, lower operational costs and enhanced competitiveness in a world racing to net zero and looking for clean products and partners.’ 

‘As a crucial pillar of Indonesia’s growing economy, those manufacturing industries that look at this as a strategic opportunity stand to gain the most – future-proofing themselves in a low-carbon world,’ she added.

Luke Brown, Climateworks Head of Policy and Engagement said attracting new sources of investment and exploring new ways of operating in existing industries will be key to realising the ambitious climate and economic growth agendas of the Prabowo administration. 

‘Manufacturing can lead Indonesia’s transition to net zero while continuing to be a major growth driver in the economy,’ he said. 

‘It is now incumbent upon Indonesian policymakers, businesses, and financial institutions to critically analyse the remaining challenges, implement robust and equitable solutions, and build a truly sustainable industrial base for Indonesia’s future.’  

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