Jakarta, March 5, 2025 – The Directorate General of Infrastructure Financing for Public Works (DJPI) under the Ministry of Public Works held a Validation Workshop on Barriers to Emission Reduction in Infrastructure Development in Indonesia. This workshop discussed the study on the Assessment of Barriers to Emission Reduction in Infrastructure Development in Indonesia, which is part of the Greenhouse Gas (GHG) Emission Reduction in Infrastructure (GERIN) Project, and is a collaborative effort between DJPI and KIAT. The forum was conducted online via Zoom.
The event was attended by more than 250 participants from various stakeholders, including government agencies, state-owned construction and investment enterprises, green development institutions, construction material industry, and accreditation institutions. The workshop aimed to serve as a collaborative platform to exchange insights, identifying, and finding solutions regarding the challeges of decarbonization in infrastructure development.
The validation workshop was opened with remarks from Agus Sulaeman, Director of System Development and Strategy for Infrastructure Financing at DJPI, who provided background information on the GHG Emission Reduction in Infrastructure (GERIN) project, followed by Rachmi Anindita, Senior Program Manager of the Climate and Infrastructure Section, Australian Embasssy.
A session on the Mainstreaming ESG in Infrastructure Financing and Greenhouse Gas Emission Reduction in ESG Implementation was presented by Aulia Ihsani, Head of Policy Development and Institutional Cooperation for Government Support and Infrastructure Financing Management.
“ESG-based investments not only generate higher economic returns but also contribute to sustainable development. With a higher average net profit margin, ESG is becoming an increasingly relevant strategy. The Ministry of Finance has prepared the ESG Framework and Manual as a guideline, and we hope for cross-ministerial and institutional collaboration to ensure optimal implementation,” said Aulia Ihsani.
Meanwhile, the study results were presented by Lenny Hidayat, Partner at Greenwise Consulting—the consulting partner for this study—delivered a presentation on the Validation of Decarbonization Barriers using the four decarbonization strategis- Reduce, Reuse, Replace and Remove as well as the issue categorization based on the 5M approach (Material, Technology, Standards and Regulations, Cost and Funding, and Skill and Capabilities). However, material and technology were merged as their finding are inseparable. The discussion was highly interactive, featuring questions, inputs, suggestions, and expectations from various stakeholders, as well as responses from government representatives in each session.
The Ministry of Industry (Kemenperin) responded to questions regarding training and in-depth materials for engineers to support GHG emission reduction by drafting a decarbonization roadmap for nine priority industrial subsectors under the Industrial Processes and Product Use (IPPU) sector. Regular verification and inventory of GHG emissions have been carried out in the cement and fertilizer industries, while other subsectors, such as pulp and paper, iron and steel, and aluminum, receive support through verification and capacity-building initiatives.
Capacity-building training on GHG emissions is conducted gradually, with a full-day duration for subsectors with specific emission calculations. In addition to industry players, this training is also proposed for sector supervisors, directorates in relevant ministries, and validation and verification institutions. Currently, Indonesia has only 11 accredited institutions for GHG emissions and seven for NEK, making technical capacity building for auditors and prospective auditors a priority.
“We have assessed four pilot projects that implement sustainable consumption in accordance with Minister of Public Works and Housing Regulation No. 9 of 2021. Currently, the application of sustainable construction remains voluntary; however, project or building owners may independently apply for an assessment. This initiative is part of our efforts to recognize and encourage the implementation of sustainable consumption within the Ministry of Public Works and Housing,” stated the Directorate General of Construction Development.
The presentation results concluded that the validation study results indicate significant progress in developing training on Low Carbon Intensity (IRK) calculations for the nine subsectors. Several challenges remain, including the accuracy of embodied carbon calculations, regulatory barriers in adopting environmentally friendly technologies, and the need for a more comprehensive ESG approach. Active cross-sector stakeholder collaboration is essential to accelerating infrastructure decarbonization initiatives.
Inputs from various parties, including GBCI, the Ministry of Finance, the Ministry of Industry, PIH, the Indonesian Cement Association, DJIF, Waskita, and ITB academics, emphasized the importance of a priority roadmap for domestic technology and economic studies on low-carbon technology adoption. Meanwhile, specific regulations on carbon calculation are still under development, with further coordination through the Ministry of Environment’s Sinas platform.
On the other hand, LKPP continues to strengthen regulations on sustainable procurement, while incentives for contractors implementing green construction remain voluntary. Additionally, efforts to enhance workforce skills in low-carbon technology are beginning to be integrated into engineer certification programs and more systematic technical training. These measures are expected to accelerate the adoption of low-carbon technology in the construction sector and reinforce commitments to sustainable development.
The study findings encompass various components, including local assessments, development literature, interviews, direct dialogues, and surveys. All this information will be compiled into a report to be disseminated and socialized in collaboration with KIAT and the Ministry of Public Works and Housing. Moving forward, concrete steps are expected to verify and report the study’s findings, including a public launch by DJPI and KIAT as a final stage.
If you are interested in developing similar projects or require strategic guidance on the implementation of low-carbon technology and sustainability, particularly decarbonization strategis, the Greenwise Consulting team is ready to assist you. Contact us at www.greenwise.co.id for further consultations and discussions on solutions tailored to your specific needs.
