John Riady: Indonesia Holds Strong Potential for Carbon Export Opportunities

JAKARTA - Industry players are expected to unlock more investment opportunities to export carbon, particularly as part of accelerating Indonesia’s goal to reduce carbon emissions by 29% by 2030.

This potential was highlighted by John Riady, Executive Director of Lippo Group, who stated that while Indonesia currently exports commodities such as coal and crude palm oil (CPO), in the near future, the country holds tremendous potential to export carbon.

“Indonesia is a carbon-rich country. We appreciate the government’s initiatives in promoting low-carbon development, which opens new doors for private sector involvement. This is an excellent opportunity,” said John Riady in a written statement on Monday, June 26, 2023.

According to John, industry players must collaborate with the government to reduce emissions and tackle climate change. One significant step in this direction is the introduction of a carbon tax on coal-fired power plants (CFPPs), which has been implemented since April 2022.

“Carbon neutrality is inevitable for industry players. Whether we like it or not, we must be part of this transformation. The government has made emissions reduction a national priority that all sectors must comply with,” he said.

John further explained that the global concept of carbon neutrality aims to balance emissions through mechanisms such as trading, crediting, or carbon taxation. Emissions from human activities contribute to carbon footprints, which in turn drive adverse effects such as droughts, clean water shortages, extreme weather, natural disasters, disruptions to the food chain, and other forms of environmental degradation.

“Carbon emissions are a result of nearly all human activity—especially in the business sector. I believe no one is exempt from producing carbon,” John emphasized.

He also pointed out that reducing emissions in the industrial sector takes time. Therefore, both public and private sectors must align strategies to drive economic growth while achieving net-zero emissions.

“Even turning on the air conditioner generates carbon. What’s needed now are tangible efforts to achieve carbon neutrality—whether through advanced technology or conservation,” he noted.

John reaffirmed that Lippo Group sees energy transition as a lever to support Indonesia’s role in building a sustainable global energy system. The company has already started its transition from fossil fuels to clean energy sources such as solar panels, hydropower, geothermal, and wind.

Additionally, Lippo Group is progressively implementing ESG standards across its subsidiaries through various technologies that help reduce emissions—ranging from wastewater conservation systems to renewable energy-based power generation.

“No one on this planet can deny the urgency of committing to a greener and more sustainable environment,” John concluded.