Indonesia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in indonesia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Environmental Technology
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Overview

Table:  Average exchange rate of Indonesian Rupiahs to U.S. dollars from the World Bank, Unit: USD millions

  2020  2021  2022

 2023 

2024

2025 (est.)

Total Exports1,1391,3831,1701,5561,7001,810
Total Imports5,0836,0357,7767,4488,2368,700
Export to the U.S.124177207202276300
Imports from the U.S.357369450457494520
Trade Surplus/Deficit(233)(192)(243)(255)(218)(220)
Exchange Rate14,58214,30814,85015,23715,855N/A

 Source: Global Trade Atlas (GTA)


Indonesia’s Environmental Sector

Indonesia is one of the largest emerging markets for environmental technology products and services. Environmental protection, carbon market development, and green infrastructure development are national priorities. In 2022, Indonesia updated its Nationally Determined Contribution (NDC) under the Paris Agreement, committing to reduce greenhouse gas emissions by 32 percent by 2030 and to achieve net-zero emissions by 2060. These commitments have spurred interest in clean technologies, particularly in waste, water, battery production, and pollution control.

Environmental challenges in Indonesia are growing more urgent, with rising air pollution, increasing urban waste, and limited access to clean water. The country ranks among the top 20 most polluted globally, especially during the dry season when forest fires (common in regions like Sumatra and Kalimantan) intensify haze pollution. Although Indonesia’s ranking fluctuates, it remains high due to factors like industrial emissions, heavy urban traffic, fossil fuel energy use, and the seasonal burning of land. These persistent environmental issues present significant market opportunities for U.S. companies providing sustainable solutions.

Leading Sub-sectors

  • Waste Management: In 2024, Indonesia generated approximately 34.2 million tons of waste across 317 districts and cities. Food waste accounted for about 39.26% of this total, the remaining waste comprises various materials, including plastics, paper, and organic matter. Indonesia has set a goal to achieve 100% waste management by 2029, with initial steps focusing on closing all landfills that still operate under open dumping systems. Regulatory frameworks require commercial establishments—such as malls, hotels, and restaurants—to implement waste management programs. Local governments are also advancing regulations and infrastructure, especially in Jakarta, to support in-house waste processing and public-private partnerships. Several waste management startups have emerged, and the first privately owned large-scale waste-to-energy plant is under construction.

  • Air and Industrial Pollution: Air pollution remains a pressing concern. The Ministry of Environment estimates that transportation contributes 44% and industry 31% of Jakarta’s pollution. Opportunities exist in emission monitoring systems, industrial dust control, desulfurization technologies, air pollution control technologies, IoT-based pollution and fire sensors.

  • Sustainable Batteries and Recycling: Indonesia is prioritizing local production of sustainable batteries to support the development of electric vehicles. In 2023, the country hosted its inaugural International Battery Summit, which has since become an annual event. This highlights Indonesia’s growing commitment to exploring best practices, advancing battery recycling, and localizing the supply chain for battery production.

  • Water and Sanitation: More than 80% of the population lacks access to piped water. Tap water is not safe to drink and water recycling is not yet regulated. There is strong demand for decentralized water treatment, filtration systems, sludge removal, and solar-powered atmospheric water generation. 

Opportunities

Indonesia’s environmental market is supported by a strong regulatory drive and public awareness. U.S. exporters are well-positioned to offer:

  • Smart, modular, or off-grid water purification and recycling systems
  • Waste sorting and composting technologies
  • Battery recycling systems and lithium recovery technologies
  • Emission control and real-time environmental monitoring solutions
  • Air-to-water generators and eco-friendly chemicals for water treatment
  • AI or Satellite fire detector technology

Events

  • WEFTEC The Water Quality Event 2025
  • ENLIT Asia 2025
  • International Battery Summit 2025
  • Plastic Recycling World North America
  • Water Quality Technology Conference 

Resources

  • U.S. Commercial Service - Indonesia: CS Indonesia
  • Industry and Analysis, Office of Supply Chain, Professional & Business Services:  US Trade
  • Indonesia Chamber of Commerce / KADIN (Kamar Dagang Indonesia) KADIN
  • Ministry of Environment Ministry of Environment

Interested parties may contact Commercial Specialist Trianie Ananda at Trianie.Ananda@trade.gov

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