Indonesia has pledged to achieve net-zero greenhouse gas (GHG) emissions by 2060. To meet this target, the steel sector, a major source of industrial emissions in Indonesia, must see its emissions peak and begin to decline. With the dominance of carbon-intensive blast furnace-basic oxygen furnace (BF-BOF) steelmaking and continued investment in new BF capacity, decarbonizing Indonesia’s steel sector will be particularly challenging.
This report provides an overview of steel production, energy use, and emissions trends in Indonesia and presents a data-driven roadmap for deep decarbonization through to 2060. It evaluates multiple technology and policy pathways through scenario analysis and outlines key milestones for 2030, 2040, 2050, and 2060. The report concludes with actionable policy recommendations for the Indonesian government, steel producers, consumers, and other relevant stakeholders.