Background

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1.1. Industrial decarbonization as a climate and economic agendai 

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Indonesia is developing an Industrial Decarbonization 2050 Roadmap to support its 8% economic growth target and commitment to achieving net-zero emissions by 2060 or sooner. The Institute for Essential Services Reform (IESR) views industrial decarbonization as both a climate agenda and an economic strategy to maintain access to export markets amid increasingly stringent global emissions standards and attract new investment. Low-carbon economic practices are projected to increase GDP by an average of up to 5.11% by 2060.

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The industrial sector accounts for 34% of Indonesia’s emissions. Of these industrial emissions, 41% originate from the eight most energy-intensive sectors, including cement. Under a business-as-usual (BaU) scenario, industrial emissions are projected to rise from 154.3 million tCO₂e in 2023 to 319 million tCO₂e in 2050, partly driven by an expected doubling of construction material production.

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The roadmap outlines five main strategies:

• Energy and material efficiency;

• Fuel and material substitution;

• Process improvements;

• Low-carbon electricity and electrification;

• Carbon capture, utilization and storage (CCUS).

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1.2. Technology readiness and the supply of low-carbon cement

 

Technologies to decarbonize heavy industries, including the cement industry, are already available. The main challenge lies in scaling up implementation, particularly regarding bankability, profitability, energy costs, policy certainty, and the readiness of supporting infrastructure, rather than technical limitations alone. Approximately 50% of global industrial emissions could be reduced using mature technologies and solutions.

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One approach to decarbonizing the cement sector is to reduce the clinker ratio by using supplementary materials such as fly ash and slag. Indocement reports that using supplementary materials in Portland Composite Cement (PCC) and Portland Pozzolan Cement (PPC) can reduce carbon emissions by 30–35% compared with Ordinary Portland Cement (OPC). Meanwhile, ASPERSSI reports that national cement production reached 64.7 million tonnes in 2025, with domestic sales of 63.9 million tonnes. These figures highlight the importance of stimulating market demand for low-carbon cement products as part of industrial decarbonization efforts.

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1.3. Green buildings as a driver of demand 

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Green buildings focus not only on energy and water efficiency during operation but also on the materials used in construction. Cement is a key construction material with a significant carbon footprint. Using low-carbon cement is therefore an important component of sustainable construction.

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In Indonesia, the adoption of green building practices through EDGE certification has covered more than 200 projects, with a total floor area of approximately 4.3 million m². One example is Ecoloft, the first residential complex in Indonesia to obtain EDGE Zero Carbon certification. The project achieved a 47% reduction in the embodied energy of materials compared with the average local building. Nevertheless, the adoption of low-carbon cement continues to face challenges related to user confidence in material performance, supply availability, costs, and policy support.

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1.4. Webinar focus and contribution to IETD 2026 

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This webinar is part of the lead-up to the Indonesia Energy Transition Dialogue (IETD) 2026, themed From Ambition to Delivery: Powering Energy Security, Future Green Growth and Competitiveness. The discussion positions the industrial and building sectors as essential to achieving Net Zero Emissions (NZE) while supporting sustainable economic growth.

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The panel discussion will explore the development of green buildings and low-carbon construction materials, progress in their adoption in Indonesia, and the challenges and opportunities associated with low-carbon cement. The discussion is expected to inform policymakers, industry stakeholders, and financial institutions in developing economically viable transition pathways that support green job creation, energy security, and sustainable economic growth.

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Objectives

1. Clarify the concepts of green buildings and green materials, and the role of low-carbon cement in sustainable construction.

2. Encourage construction industry stakeholders, those involved in procurement, and the public to use green materials, particularly low-carbon cement.

3. Showcase evidence of green material use in certified green buildings in Indonesia.

4. Identify challenges and opportunities in the adoption of low-carbon cement.