Indonesia's manufacturing sector contributes roughly a fifth of GDP and three quarters of non-oil and gas exports, but it also emits about 382 million tonnes of CO2 a year. A new IESR report argues that this exposure now affects trade competitiveness, especially with the EU CBAM in its definitive phase. Without verified emissions data, Indonesian steel exporters could face EU default values several times higher than their actual emissions intensity. IESR recommends better MRV systems, mandatory green industry standards, and low-carbon procurement to push demand. It also highlights cheaper efficiency options, such as scrap-based electric arc furnaces, lower clinker cement, heat pumps, and efficient motors. The report frames these as cost-saving measures, not just compliance costs. The longer term shift depends on cleaner electricity and transition finance, which the article only sketches out.
