Industrial decarbonisation could give Indonesia an opportunity to\nlead the development of low-carbon industries in the region.<\/p>\n
Jakarta (ANTARA) \u2013 National industrial decarbonisation faces\nchallenges ranging from the need for low-emission technologies to the\nhigh investment costs manufacturers must bear.<\/p>\n
To address these issues, a Green Industry Service Company (Gisco) is\nbeing prepared as a financing bridge linking industrial players,\ntechnology providers and financial institutions to accelerate the\ntransition to green industry.<\/p>\n
The initiative, developed by the Ministry of Industry, is becoming\nincreasingly relevant as the adoption of carbon capture and utilisation\n(CCU) technology is encouraged.<\/p>\n
The technology has been piloted at PT Petrokimia Gresik and is\nreported to have reduced carbon dioxide emissions by more than 95 per\ncent, while also producing economically valuable by-products.<\/p>\n
As well as reducing emissions, the technology could produce soda ash,\nan industrial raw material that Indonesia still relies on imports for.\nThe government is also preparing an incentive scheme for companies that\ninstall the technology.<\/p>\n
This drive shows that decarbonisation is not only about cutting\nemissions; it also creates opportunities to improve efficiency, develop\nnew products and strengthen industrial competitiveness.<\/p>\n
However, adopting the technology requires substantial investment. The\nproposed mechanism is therefore expected to play a strategic role in\nconnecting industry\u2019s needs with suitable financing sources and\ntechnological solutions.<\/p>\n
For industries with high energy requirements and narrow operating\nmargins, investment costs are a major consideration.<\/p>\n
The initiative is designed to bridge this gap by creating an\necosystem that connects financial institutions, technology providers and\nindustrial players.<\/p>\n
The Ministry of Industry has initiated Gisco\u2019s development with\nsupport from the World Bank in the form of advisory assistance,\nconcessional loan commitments and grants.<\/p>\n
The initiative has also been included in the National Development\nPlanning Agency\u2019s Blue Book and is targeted for launch in the second\nhalf of 2026.<\/p>\n
Such a mechanism matters because the benefits of decarbonisation are\nnot always immediately apparent. Before making a decision, companies\nmust weigh the costs of installing equipment and adjusting production\nprocesses, as well as the certainty of a return on investment.<\/p>\n
Affordable financing is therefore a key factor in ensuring that green\nindustry policies can be implemented more widely, particularly in\nsectors with high emissions intensity.<\/p>\n
One example of low-carbon technology in Indonesia is the CCU pilot\nproject at PT Petrokimia Gresik, developed in collaboration with\ntechnology providers from Japan and Taiwan.<\/p>\n
The technology is also projected to enable Petrokimia Gresik to\nproduce up to one million tonnes of soda ash a year. This output could\nreplace imports and generate additional revenue of about US$200 million,\nor Rp3.6 trillion, annually.<\/p>\n
This economic potential shows that carbon capture and utilisation\ntechnology can go beyond serving as equipment to meet environmental\ntargets. Captured carbon can be used as part of a production process\nthat generates added value.<\/p>\n
Its application could also be extended to the cement, chemicals,\nsteel and ceramics industries, as well as other sectors that produce\nlarge volumes of carbon dioxide emissions.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/a-financing-ecosystem-for-industrial-decarbonisation-1792076082", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }