Indonesia's industrial sector generates close to one-fifth of GDP but accounts for nearly one-third of national emissions. The Indonesia Industrial Decarbonization Outlook 2027, published by IESR, is the first report dedicated to tracking industrial decarbonization in the country. It examines how global pressure, especially the EU's Carbon Border Adjustment Mechanism, is reshaping trade and investment for Indonesian manufacturers. The report covers six areas: low-carbon competitiveness, decarbonization technologies, green industrial policy and MRV, transition financing, infrastructure and innovation, and just transition. It argues that cutting industrial emissions is not just an environmental goal, but a way to keep Indonesian products competitive in markets that increasingly demand lower-carbon supply chains. Readers will find a practical overview of policy levers and financing tools, from carbon pricing and blended finance to green public procurement. The report is aimed at policymakers, industry leaders, and financial institutions working on Indonesia's industrial energy transition.
