Overview

Indonesia is one of the largest emerging markets in the world for environmental technology products.  Environmental protection and climate change are high-priority policy areas for the Government of Indonesia. In September 2022, the government updated its 2015 Nationally Determined Contribution to the Paris Agreement, committing to reduce GHG emissions by 32 percent by 2030 and committed to reach net-zero emissions by 2060. In addition, the government seeks to strengthen pollution prevention and control efforts, as well as sustainable construction of environmental infrastructure. Water technologies, waste management, and sustainable battery production are best prospect industry sectors.

Leading Sub-Sectors

Waste: Indonesia produced over 64 million tons of waste in 2022, an increase of 4 million from 2021. With no proper formal collection system in place, household waste is collected by waste scavengers and collectors. The current government Waste Regulations targets consumer goods, retail sector, hotel, and restaurant industries.  The regional government of Jakarta was one of the first provincial governments to issue Waste Management Regulations in 2021 to encourage the development of inhouse waste management systems or establish partnerships with waste management companies.  The result of this regulation is the establishment of several waste management startups. A Waste Plant is also being built in Jakarta as the first privately owned, large-scale facility with sustainable processes in in Indonesia.

Pollution: In August 2023, Indonesia’s capital was ranked as the most polluted city in the world.  Contributors include coal power plants that surround the 11 million residents of the city. Data from the Indonesian Ministry of Environment and Forestry (KLHK) suggests 44% of air pollution comes from transportation with 31% attributed to industry.

Battery: Indonesia is prioritizing the development of sustainable battery production.  On August 16, 2023, the country hosted their first International Battery Summit addressing topics such as nickel competitiveness, best mining practices, good governance, incentives for research and innovation in battery engineering and recycling, and how to accelerate the development of electric vehicle infrastructure.

Water: Access to clean water and sanitation has been a priority area for government.  The majority of the country’s 270-million-person population does not have access to piped water and are dependent on river water or bottled water.  For the 20% of the population that has a water main connection, the quality of the municipal water supply is low, and the drinking tap water is discouraged. Water recycling is neither regulated nor encouraged although it can provide alternatives to existing water supplies and be used to enhance water security, sustainability, and resilience.

Opportunities

• Waste Management
• Solid waste management, water waste (including technologies to treat bio-hazardous waste)
• Fast fashion waste management
  • Pollution
    • Air pollution control & emission control equipment
    • Chemical or machines for dust controller for various industry.
    • Pollution sensors and IOT management.
    • Bio-Chemicals for desulfurization.
  • Battery
• Solar power battery for home and small industries.
• Rechargeable battery recycling process & system, especially lead.
  • Water Treatment
    • Eco-friendly / microbiome based suspended solids removal, and supervision engineering services, Bio Chemicals for water purifications (flocculants) for various industries
    • Air capture water producer, powered by solar energy.
  • Recycling
• In-Office Paper recycle machines & system.
• Yarn recycles process, chemical & technologies.
• Events
• WEFTEC The Water Quality Event 2023 : https://www.weftec.org/
• ENLIT Asia 2023 : https://www.enlit-asia.com/
• Plastic Recycling World North America : https://na.plasticsrecyclingworldexpo.com/
• Water Quality Technology Conference https://www.awwa.org/
• Resources
• U.S. Commercial Service - Indonesia: https://trade.gov/indonesia  
• Industry and Analysis, Office of Supply Chain, Professional & Business Services:  https://www.trade.gov/about-us/office-supply-chain-professional-and-business-services  
• Indonesia Chamber of Commerce / KADIN (Kamar Dagang Indonesia) https://www.kadin-indonesia.com/
• National Planning Agency (Bapenas), Environment Department https://www.bappenas.go.id/
• Ministry of Environment and Forestry Directory Waste Management https://www.menlhk.go.id/

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