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Indonesia rolls out five-pillar cement decarbonization strategy

Jakarta (ANTARA) – The Indonesian Ministry of Industry is accelerating the transformation of the national cement industry toward a more environmentally friendly sector by implementing a decarbonization strategy based on five key pillars.Head of the Ministry’s Standardization and Industrial Services Policy Agency, Emmy Suryandari, said in a statement confirmed on Wednesday that the strategy focuses on emission reduction as the top priority before moving toward carbon neutrality.”The global cement industry is currently navigating a complex business environment shaped by three major influences: urbanization, decarbonization, and digitalization,” she said.She explained that the five pillars include energy and material efficiency through production process optimization; fuel and material substitution by encouraging the use of biomass and hydrogen; and production process upgrades using more efficient technologies.Furthermore, the other pillars are electrification and the use of renewable energy by replacing fossil-fuel-based machinery with electric-based systems and the implementation of carbon capture technology to utilize emissions.Speaking at the Intercem Asia 2026 event in Jakarta on Wednesday, she emphasized the vital role of the cement and non-metallic mineral sectors in infrastructure development, driving investment, creating jobs, and stimulating manufacturing growth.In 2025, the cement sector recorded 6.16 percent growth, with investment reaching Rp25 trillion (approximately US$1.45 billion), exports totaling US$1.79 billion, and the number of jobs created reached 900,000.Suryandari noted that with an installed capacity of 121.66 million tons per year, Indonesia has solidified its position as one of the largest cement producers in Southeast Asia.She stated that the national cement industry is not only capable of meeting domestic demand—projected to reach 64 million tons in 2025—but also maintaining export momentum for cement and clinker, valued at US$443 million.This figure represents an 18.25 percent year-on-year increase, with primary export destinations including Bangladesh, Australia, Taiwan, the Philippines, and Sri Lanka.The Ministry of Industry has prepared a cement industry decarbonization road map to serve as a strategic guide for gradual emission reductions.In the 2010 baseline, the cement industry had a clinker factor of 81 percent, a thermal substitution rate (TSR) of 3 percent, and specific emissions of 724 kg of CO2 per ton of cement equivalent.With various efficiency and innovative measures, the achievement has surpassed the 2025 target. Clinker factor has been reduced to 68.1 percent, TSR increased to 12.58 percent, while specific emissions dropped to 566.3 kg of CO2 per ton of cement equivalent.