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Indonesia joins global initiative to expand demand for low-carbon materials

A partnership between Indonesia’s procurement agency and UNIDO will support practical implementation of green public procurement.

By Maya Santos

Steel and concrete materials at a construction site
Photo: Antara News

Indonesia has joined the Industrial Deep Decarbonization Initiative (IDDI), linking its efforts to cut industrial emissions with government purchasing policies designed to expand the market for low-carbon materials. The global coalition is coordinated by the United Nations Industrial Development Organization (UNIDO).

The membership announcement took place in Jakarta during the Regional Dialogue on Advancing Green Public Procurement in Asia. Indonesia’s Government Goods/Services Procurement Policy Agency (LKPP) organised the event with UNIDO, Agora Industry and Industrious Labs. LKPP and UNIDO also launched a formal partnership to help put green procurement ambitions into practice.

Dwi Rahayu Eka Setyowati, LKPP’s director for business climate and international cooperation, said consistent government demand would give manufacturers a clearer commercial reason to invest in sustainability. She said public purchasing should help reshape markets and encourage investment in lower-carbon production.

During the three-day dialogue, participants from government, industry, finance and development organisations examined ways to implement green procurement. Their discussions covered compulsory purchasing standards, electronic procurement platforms, Environmental Product Declarations and carbon-footprint benchmarks for steel, cement and concrete.

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