Indonesia is taking further steps towards industrial decarbonisation, with recent developments in Carbon Capture and Utilization (CCU) technology highlighting opportunities to reduce industrial emissions while creating economic value from captured carbon.
On 16 October 2026, Indonesia’s Minister of Industry, Muhammad Sarmuji, visited PT Petrokimia Gresik in East Java to review the progress of a CCU pilot project. The initiative demonstrates how carbon dioxide (COâ‚‚) generated by industrial processes can be captured and converted into commercially valuable products.
The development reflects Indonesia’s growing focus on integrating environmental sustainability with industrial competitiveness and technological innovation.
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Promising Results from the Petrokimia Gresik Pilot Project
The CCU pilot project is being developed through collaboration involving the Ministry of Industry, PT Pupuk Indonesia (Persero), PT Petrokimia Gresik, and UWin Resources Regeneration Inc.
According to reported evaluation results, the technology achieved a COâ‚‚ capture efficiency ranging from 91.48% to 97.79%.
The captured carbon is subsequently utilised to produce soda ash (sodium carbonate), an industrial chemical used in applications such as glass manufacturing, detergents, and chemical processing.
Testing conducted in May 2026 demonstrated sodium carbonate purity levels of 99.12% to 99.73%, meeting the applicable Indonesian National Standard (SNI 06-0598-1989).
These results demonstrate the technical potential of converting industrial emissions into valuable industrial materials.
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Towards Broader Industrial Application
Following the pilot project’s results, the Ministry of Industry has indicated its intention to develop a roadmap for the broader application of CCU technology across Indonesia’s industrial sector.
However, further assessment of commercial feasibility, investment requirements, and operational scalability remains necessary before wider industrial implementation can proceed.
Pupuk Indonesia is also evaluating the economic viability of expanding the technology beyond the pilot stage.
This development illustrates an emerging approach to industrial decarbonisation in which emissions reduction can be combined with resource efficiency and the creation of additional economic value.
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Emerging Business Opportunities
The potential expansion of CCU technology could create new opportunities across Indonesia’s industrial value chain.
Relevant areas may include carbon capture systems, industrial process engineering, gas treatment and compression equipment, measurement and monitoring technologies, industrial automation, and carbon utilisation solutions.
Beyond CCU, Indonesia’s broader industrial decarbonisation agenda may also encourage investment in energy efficiency, emissions management, cleaner production processes, and industrial resource optimisation.
These developments could support new technology partnerships, engineering collaborations, and specialised industrial services as companies explore commercially viable approaches to reducing emissions.
While no new procurement opportunity has been announced specifically for the commercial expansion of the Petrokimia Gresik project, its progress provides an indication of potential future demand for industrial decarbonisation technologies.
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Outlook
The transition towards lower-carbon industrial production presents both technological and economic considerations for Indonesia’s manufacturing sector.
The experience gained from the Petrokimia Gresik pilot project could contribute to future discussions on technology deployment, investment feasibility, and the development of commercially sustainable decarbonisation solutions.
SwissCham Indonesia will continue monitoring relevant market developments and emerging business opportunities to support information exchange and strengthen commercial engagement between Switzerland and Indonesia.
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