Indonesia's steel industry aims to produce green steel

According to a country report by the Indonesian Iron and Steel Association, Indonesia's steel industry is preparing to produce green steel using scrap-based electric arc furnace (EAF) production capacity. These facilities have a capacity of 6 million tonnes per year. However, the transition to new technologies is not without challenges.

The industry requires active support from the government to ensure a steady supply of clean electricity needed to produce clean steel. In addition, domestic scrap metal resources are limited, requiring new regulations to facilitate the import of scrap metal for use as raw material. Such regulatory support is critical to the industry's transition to greener production methods.

Steel producers using the traditional blast furnace and basic oxygen furnace (BF-BOF) and rotary furnace and electric arc furnace (RK-EAF) technologies are also encouraged to adopt zero-emission (NZE) technologies. This transition is in line with global trends in the steel industry and the Indonesian government's commitment to achieve zero emissions by 2060 or even earlier.

The transition to renewable energy and green steel production is part of Indonesia's broader sustainability strategy. The national government has taken many initiatives to make renewable energy affordable while prioritising environmental protection.
Indonesia has set ambitious targets to reduce greenhouse gas (GHG) emissions. The country aims to reduce emissions by 31.89 % through its own capacity and 43.20 % with international support. This commitment is being realised through various initiatives, including energy conservation and the promotion of clean and renewable energy.

In 2022, Indonesia exceeded its energy sector emission reduction target by achieving a reduction of 91.5 million tonnes of CO2, exceeding the target of 91 million tonnes. This achievement was driven by the deployment of renewable energy, energy efficiency measures, use of low carbon fuels such as natural gas, clean technology deployment and other initiatives.