What is Indonesia's pathway to limit global warming to 1.5°C?

Industry

Last update: 1 August 2022

In Indonesia, the industrial sector makes up 37% of direct CO₂ emissions and has the highest share in primary energy demand at 36.4% in 2019.1,2 While its energy demand has been volatile since 2008, it has steadily increased since 1990 at an annual rate of 6.4% reaching 36% in 2019.3 Analysed scenarios show that in 1.5°C compatible pathway share of electricity in industry will increase in the range of 18-20% by 2030 and 45-56% by 2050 from 2019 level of 14%. All scenarios see a rapid decline in direct CO₂ emissions to 75-79 MtCO₂/yr by 2030, and 14-15 MtCO₂/yr by 2050 from 2019 level of 180 MtCO₂/yr. This decline will mostly be driven by increased energy efficiency.

Indonesia's energy mix in the industry sector

petajoule per year

Scaling

Fuel share provided refers to energy demand only from the industry sector.

The sectoral primary energy demand is heavily dominated by fossil fuels (75% in 2019), comprising of coal 42%, oil 11% and natural gas 22% in 2019. All scenarios show peaking of fossil energy demand by 2025-2030, and a declining trend after that to reach 14-54% share by 2050.

The share of industrial process emissions is 6.3% of total emissions excluding LULUCF (59 MtCO₂e/yr in 2019), increasing since 1990.4 All scenarios except one show a declining trend of process emissions from 2025, reaching up to –3 to 57 MtCO₂e/yr by 2050.

Energy efficiency improvements in Indonesia constitute an important intervention for industrial energy conservation as better energy efficiency prevented 8% of additional energy use between 2010 and 2018.5 Additionally, structural change of the economic activities from energy intensive manufacturing to the less energy intensive service sector has contributed significantly to emissions reduction, particularly in the period 2014-18.6 As a part of industrial emissions intensity reduction policy Indonesia is set to expand its biofuel blending mandate beyond transport sector for industries also.

Indonesia's industry sector direct CO₂ emissions (of energy demand)

MtCO₂/yr

Direct CO₂ emissions only are considered (see power sector for electricity related emissions, hydrogen and heat emissions are not considered here).

Indonesia's GHG emissions from industrial processes

MtCO₂e/yr

1.5°C compatible industry sector benchmarks

Direct CO₂ emissions, shares of electricity, and combined shares of electricity, hydrogen and biomass from illustrative 1.5°C pathways for Indonesia

Indicator
2019
2030
2040
2050
Decarbonised industry sector by
Direct CO₂ emissions
MtCO₂/yr
180
75 to 79
36 to 36
14 to 15
2046 to 2050
Relative to reference year in %
-59 to -56%
-80 to -80%
-92 to -92%
Indicator
2019
2030
2040
2050
Share of electricity
per cent
14
18 to 20
31 to 40
45 to 56
Share of electricity, hydrogren and biomass
per cent
25
35 to 47
47 to 87
57 to 96

Fuel share provided refers to energy demand only from the industry sector. BECCS are the only Carbon Dioxide Removal (CDR) technologies considered in these benchmarks.
Only direct CO₂ emissions are considered (electricity, hydrogen and heat emissions are not considered here; see power sector for emissions from electricity generation). All values are rounded. Year of full decarbonisation is based on carbon intenstiy threshold of 5gCO₂/MJ.

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