Indonesia Air Pollution Control

In 2023, Jakarta earned the title of the most polluted city in the world, surpassing all other ASEAN nations with its alarming air quality index. The news came just days after the Swiss company IQAir released data showing that Jakarta’s air quality had deteriorated in recent weeks to become the worst in the world. This wasn’t just a minor increase in pollution–the city’s air quality reached unhealthy levels, posing a serious threat to the health of its residents.

While Jakarta’s air quality has fluctuated in recent years, this wasn’t the first time the issue occurred–even in 2019, Jakarta struggled with concerning pollution levels. The COVID-19 lockdowns provided a temporary relief, but by mid-2023, the city found itself back in the grips of a severe air pollution crisis. Recognizing the dire health consequences of such high pollutant exposure, the Jakarta municipality government, along with BMKG (Indonesia’s meteorological agency), the Ministry of Environment, and the Ministry of Health, have joined forces to develop solutions to tackle Jakarta’s air pollution problem.

One such solution is emission testing. While mandatory emissions testing exists for both private and public vehicles with penalties for failing, enforcement thus far has been inconsistent. This lack of consistent implementation, coupled with public confusion about certified testing locations, currently undermines the effectiveness of the program.

The government has aimed to tighten regulations on industrial emissions for large established facilities and smaller businesses. The later recognized as significant contributors to air pollution. While implementing regulations for smaller businesses remains a challenge, we’ve observed a growing number of small businesses voluntarily adopting these standards, even in the absence of strict enforcement. The growing awareness among small businesses presents an opportunity for U.S. suppliers. While the transactions may be smaller compared to large businesses, the sheer volume and potential for continued growth make this market highly attractive.

For pollution instruments and pollution control chemicals, there is a high demand for products and solutions. However, U.S. firms may face a few hurdles when entering the Indonesian market. First to note is that there is strong competition from global companies. This often results in the need to balance cost with quality, sometimes putting U.S. firms at a disadvantage, as Indonesian buyers might prioritize product price over lifecycle cost. Next, intellectual property protection remains a concern, especially for innovative clean technologies in which U.S. firms often specialize. Finally, the market for air pollution control technologies, including both factory chemicals and consumer-grade sensors, appears saturated, requiring U.S. firms to carve out a niche to provide unique solutions.

For more information, please contact Commercial Specialist Trianie Ananda at Trianie.Ananda@trade.gov