Indonesia
EU TO IMPLEMENT CBAM IN 2026 AND ITS IMPACT ON INDONESIAN MANUFACTURING
The European Union plans to fully implement the Carbon Border Adjustment Mechanism (CBAM) across all industrial sectors by January 2026. Under this policy, imported goods that fail to meet CBAM requirements may face tariffs or be banned from EU markets. Dewi Muliana, Director of International Industrial Access at Indonesia’s Ministry of Industry, highlighted that the manufacturing sectors—particularly steel, aluminum, cement, and fertilizer—will be the most impacted. These industries will need to track and report the carbon footprint of their products, a process requiring emission monitoring systems that are not yet fully developed in Indonesia. The anticipated additional export costs are significant: approximately $319,825 for iron and steel, $20,692 for aluminum, and $724 for fertilizers. While the policy poses a challenge to Indonesia’s industrial competitiveness, especially compared to countries with more advanced green systems, CBAM may also serve as a catalyst for positive change. The regulation could drive Indonesia to adopt cleaner energy sources and invest in green industrial practices. This transition toward environmentally friendly production may enhance long-term sustainability and open new opportunities for Indonesian exports in eco-conscious markets.Source: https://money.kompas.com/read/2025/05/09/151524326/uni-eropa-siap-terapkan-cbam-pada-2026-ini-dampaknya-ke-manufaktur-ri (ICE GIACARTA)
Fonte notizia: KOMPAS, 9 May 2025