Deputy Minister Of Industry Says Industrial Decarbonization Needs Investment Of Up To IDR 5,000 Trillion

Deputy Minister of Industry (Wamenperin) Faisol Riza said the need for investment to realize decarbonization in the industrial sector until 2030 reached IDR 5,000 trillion.

Faisol said the investment was needed to finance the application of low-carbon technology and other decarbonization efforts for four sub-sectors from nine priority industrial sub-sectors for decarbonization. The four sub-sectors are the cement industry, the fertilizer industry, the iron & steel industry and the pulp and paper industry.

"Make no mistake because the green funds are extraordinary today and should be used by many industries to be able to access green funds which may be more than IDR 5,000 trillion," said Faisol at the Ministry of Industry office, Jakarta, written Thursday, December 19.

Faisol emphasized that the need for green investment needs support from various parties, especially green funding providers.

He also said that the economic potential of the industrial sector's decarbonization effort could make a significant contribution to the 8 percent economic growth target as announced by President Prabowo Subianto.

In addition, Prabowo also encouraged the transformation towards a greener industry in optimizing the empowerment of local resources, especially in steps towards energy independence and other resources.

"In order to support Indonesia's vision, the Ministry of Industry is committed to continuing to encourage the industrial sector, manufacturing to become more resilient and competitive," he said.

Previously, the Deputy Minister of Industry said that the transformation of the industry towards the green industry was no longer an option, but rather a necessity to achieve the Net Zero Emissions (NZE) target in 2060.

Moreover, the industrial sector is a large contributor to greenhouse gas (GHG) emissions, reaching 34 percent.

"Industrial transformation towards a green industry is no longer an option, but a must for the future of our nation and earth," said Faisol at the 2025 Kick Off 2nd Annual Indonesia Green Industry Summit (AIGIS) at the Ministry of Industry office, Jakarta, Wednesday, December 18.