Joint Opening Indonesia Net Zero Summit 2022 and B20 Investment Forum: Call for collective action to decarbonise the industry

Joint Opening Indonesia Net Zero Summit 2022 and B20 Investment Forum: Call for collective action to decarbonise the industry
Speakers for Joint Opening of Indonesia Net Zero Summit 2022 and B20 Investment Forum, from left to right: M. Arsjad Rasjid, Luhut B. Pandjaitan, Bahlil Lahadalia, Shinta Kamdani, and Norimasa Shimomura.

Bali, 11 November 2022 – Over 1.000 people from 30 countries gathered at Bali Nusa Dua Convention Center (BNDCC) 1, Bali, to engage in discussions that would fuel Indonesia’s advancement to achieve net zero. The Indonesia Net Zero Summit 2022: Industrial Decarbonization at All Cost, hosted by KADIN Net Zero Hub, was a chance for both national and multinational companies to address and discuss challenges, opportunities, and the current progress of Indonesia’s transition towards a climate-resilient future.

The event, which was held on Friday, November 11, kicked off the first national discussion on industrial decarbonization at an international scale.

In a joint opening for Indonesia Net Zero Summit 2022 and B20 Investment Forum, the event was opened by Shinta Widjaja Kamdani as the B20 Chairwoman, with welcoming remarks from Norimasa Shimomura as UNDP Representative and M. Arsjad Rasjid P.M. as Chairman of Indonesia Chamber of Commerce and Industry (KADIN Indonesia), followed by context setting by Bahlil Lahadalia, Minister of Investment. Luhut B. Pandjaitan, Coordinating Minister of Maritime and Investment, also attended the event to deliver a keynote speech.

KADIN Net Zero Hub Assists Indonesian Private Sector in Decarbonizing the Industry

With the climate crisis being a global challenge that impacts all nations in every aspect of living, a worldwide response of keeping the rise of global temperature to under 1.5 degree celsius raises the urgency to transition towards a low-carbon economy. As a key driver in the national economy, the industrial sector plays a big role in this transition journey, through, especially, industrial decarbonization.

Understanding the challenge in this transition, the Indonesia Chamber of Commerce and Industry (KADIN Indonesia) has been assisting companies in turning their net zero commitments into actions through the initiative KADIN Net Zero Hub. Established last year at the end of COP26, the initiative which is led by KADIN Indonesia’s Chairman of Renewable Energy Committee, Muhammad Yusrizki, has helped over 50 national companies in counting their corporate emissions to provide a strong basis in setting their emission reduction targets and pathways.

“The summit affirms the commitment of Indonesian businesses to decarbonize the industry at all costs and showcases the works of KADIN Net Zero Hub.”

Industry Dilemma

Present at the summit as B20 Chairwoman, the Vice Chairwoman of Maritime, Investment and International Relations of KADIN Indonesia, Shinta Widjaja Kamdani, emphasized the role of the business sector in realizing the theme of “Recover Together, Recover Stronger” that this year’s G20 raises.

Shinta Widjaja Kamdani mentioned how the industry is facing a dilemma. While the business sector has been blamed for producing too much carbon —with the industrial value chain generating 74.5% of GHG emission worldwide— “… at the same time, the business holds the responsibility for speedy economic recovery,” she underlined.

Bearing this responsibility will require support and partnership, especially to ensure a just energy transition, as highlighted by UNDP Resident Representative, Norimasa Shimomura, in his welcome remarks. Signing an MoU with KADIN Indonesia during the summit’s opening, “one area of cooperation is to engage and support enterprises to take climate actions to manifest companies’ commitments to achieve net zero,” Shimomura provided.

Transforming businesses to ensure Indonesia achieves its net zero targets is no easy feat, yet there are already more than 50 companies who have signed their commitment on paper to become a net zero company through KADIN Net Zero Hub, and they are on their way to reduce their carbon emissions.

Indonesia Understands the Urgency of Climate Policy

Transforming into a net-zero Indonesia will need collective actions by all actors, involving both the private and public sectors to build an enabling ecosystem. This entails aspects that can facilitate businesses to transform their practices and operations, such as providing incentives and investments to companies who intend or are already shifting towards renewables.

Present at the summit to represent the government were Minister of Investment, Bahlil Lahadalia, and Coordinating Minister of Maritime and Investment, Luhut B. Pandjaitan.

In regards to clean energy investment, Indonesia is planning a hydroelectric power plant (PLTA) with a planned total generating capacity of 9,000 MW in North Kalimantan.

“The clean energy produced will supply the Indonesian Green Industrial Estate (KIPI Tanah Kuning), with a total investment commitment of USD 130 billion,” said Bahlil Lahadalia.

Setting the context for the summit, the Minister of Investment highlighted Indonesia’s rich natural resources that hold an abundant potential to support the transition towards cleaner energy. When we talk about renewable energy, Indonesia possibly holds the biggest potential among other Southeast Asian countries.

Luhut B. Pandjaitan, Coordinating Minister of Maritime and Investment, reemphasized Indonesia’s strong position in the decarbonization agenda through his keynote speech.

With Southeast Asia often being dubbed as one of the most vulnerable regions in regards to climate impacts, Indonesia understands the urgency of having climate policies that can push for real, impactful climate actions.

“I am making sure that the policy we are creating today won’t jeopardize the future of our next generation,” said the Coordinating Minister.

Engaging participants in five panel discussions, the Indonesia Net Zero Summit 2022 highlights the urgency of transitioning to a greener economy through five topics: Value Chain Decarbonization, Call for Ambitions: Hard to Abate Industries, Decarbonizing Power Grid, Corporate Climate Governance, and Engagement Through Financial Sector.

In-between the panel discussions are Call to Actions done in the form of MoU signings, a proof of how the summit embodies the spirit of KADIN Net Zero Hub: to push businesses to go beyond commitment statements and take real, climate actions. With panelists and guests coming from different sectors and nations, the summit became a starting point for Indonesia to mobilize the national industry collectively and collaboratively at large.

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