Climate Policy Engagement Analysis
Climate Policy Engagement Overview: The Indonesian Chamber of Commerce and Industry (Kadin) has moderate levels of engagement with climate policy and holds positive positions. KADIN has expressed strong support for the energy transition in Indonesia and has supported the development of Indonesia’s first carbon tax and emissions trading system.
Climate Policy Engagement Overview: The Indonesian Chamber of Commerce and Industry (Kadin) has moderate levels of engagement with climate policy and holds mostly positive positions. Kadin has strongly supported the electrification of the transport sector, however also advocates for a long-term role for oil and gas in Indonesia.
Top-line Messaging on Climate Policy: The Indonesian Chamber of Commerce and Industry (Kadin) demonstrates positive top-line messaging on climate policy. In a June 2024 Eco-Business article, the group appeared to support achieving net zero emissions earlier than Indonesia’s 2060 target. In October 2023 advocacy information released on Kadin’s media portal, it supported the development of Enhanced Nationally Determined Contribution (ENDC) for Indonesia ahead of COP28, which saw the country commit to increased GHG emission reduction targets. Kadin has not explicitly supported the need for government regulation to respond to climate change.
Engagement with Climate-Related Regulations: The Indonesian Chamber of Commerce and Industry (Kadin) has positive but limited engagement with climate-related regulations. According to the organization’s Sustainability page, accessed in October 2024, Kadin supported the implementation of the Carbon Economic Value (NEK) in Indonesia, which introduced an economic price on carbon and an emissions trading system. In a June 2024 Eco-Business article, Kadin referenced the EU carbon border adjustment mechanism without taking a clear position on the policy.
Positioning on Energy Transition: The Indonesian Chamber of Commerce and Industry (Kadin) engages on the energy transition with broadly positive positions, however the group has supported a long-term role for oil and gas in Indonesia’s energy mix.
Kadin has strongly supported regulatory measures towards the electrification of transport and the growth of renewable energy in Indonesia. In an April 2024 opinion piece in Modern Diplomacy, Chairman Arsjad Rasjid called for a range of measures to grow the electric vehicle supply chain in Indonesia, including financial incentives and the further development of infrastructure such as charging stations. Additionally, in an April 2023 blog post, Rasjid strongly supported the Indonesian government’s electric vehicle incentive programme, describing electric vehicle proliferation as a main priority for Kadin. In a July 2024 Indonesia Business Post article, Kadin also advocated for improvements in infrastructure and investment opportunities to develop the renewable energy sector in Indonesia.
However, in July 2024 advocacy information released on Kadin’s media portal, the association disclosed its support for carbon capture and storage (CCS) in combination with a role for fossil fuels in the energy mix in a meeting with policymakers. This is misaligned with IPCC guidance on achieving 1.5C warming, which states the need for a significant reduction in fossil fuel use with only a limited and/or targeted role for fossil fuels with CCS in the 2050 energy mix. Although, in the same disclosure the group did support a role for hydrogen produced using renewable energy, while also supporting additional renewable energy capacity.
Additional Note: The Indonesian Chamber of Commerce and Industry (Kadin) is headquartered in Indonesia, where InfluenceMap’s LobbyMap platform can currently only make a provisional assessment of corporate climate policy engagement, due to limited capability to access publicly available data on this issue. As it is possible that InfluenceMap is not yet able to fully capture evidence of KADIN's climate policy engagement activities, these scores should be considered provisional at this time.