Introduction

On 27 October 2025, Aksi Ekologi dan Emansipasi Rakyat (AEER) held a dissemination discussion on the theme of Dissemination and Closed Discussion on Fair Steel in Indonesia.

This activity aimed to increase public understanding of the urgency of the climate crisis and green industry competition, and to encourage multi-stakeholder synergy in decarbonisation and air quality improvement efforts to improve the health of communities around the steel industry.

The discussion was attended by various stakeholders, including government representatives from ministries, civil society organisations, and research institutions. The event was also held in a hybrid format at the Mercure Gatot Subroto Hotel, Central Jakarta, from 13:30 to 17:00 WIB.

Speakers:

1. Timotius Rafael and Yuyun Hikmatul Uyun – Environmental Researchers at Aksi Ekologi dan Emansipasi Rakyat (AEER)
2. RR Sri Gadis Pari Bekti – Functional Officer, Policy Analyst at the Green Industry Centre, Ministry of Industry of the Republic of Indonesia
3. Ardoni Eka Putra, ST – Senior Expert at the Centre for Environmental Impact Control and Business Activities (PDLUK) of the Ministry of Environment/BPLH

Participants involved include:

1. Government Agencies: Ministry of Industry of the Republic of Indonesia, Ministry of Environment/BPLH
2. Civil Society Organisations and Research Institutions: Indonesian Centre for Environmental Law (ICEL), The Habibie Centre, Climate Catalyst, Institute for Essential Services Reform (IESR), Indonesia Iron and Steel Industry Association (IISIA), Centre of Economic and Law Studies (CELIOS), Centre for Energy and Clean Air (CREA), Centre for Strategic and International Studies (CSIS), ASEAN Centre of Energy (ACE).

Activity content

The dissemination began with a presentation of the AEER research report entitled “Analysis of the Impact of the Steel Industry on Social Conditions and Public Health in the Era of Decarbonisation- “. AEER researchers revealed that based on data from the Ministry of Environment and Forestry, total national GHG emissions reached 1.36 billion tonnes of CO₂e in 2023. The steel industry is one of the contributors with relatively high GHG emissions. The Blast Furnace-Blast Oxygen Furnace (BOF-BF) technology used by the steel industry in Cilegon City not only produces high emissions and air pollution but also impacts the surrounding community.

In the CO₂ estimation calculation conducted by AEER based on the Greenhouse Gas Protocol, when compared to the national industrial emissions in 2022 of 340 million, steel companies in Cilegon have already reached 2.8% of the total emissions in phase 1 alone. This calculation was obtained through annual production data and the amount of materials/raw materials used that contain carbon. This makes it urgent for steel companies to decarbonise immediately, considering that there are also plans to double capacity, which, according to calculations, will also emit CO2 at the same rate.

Meanwhile, based on the AEER research questionnaire, residents of Tegal Ratu Village, which is referred to as ring 1 of the industrial area, admitted to frequently experiencing health problems in the past year, such as coughs, flu, colds, itching, fever and so on. They said these health complaints were caused by poorer air quality. In addition, some of these health problems are symptoms of mild respiratory tract infections (ISPA). According to the questionnaire results, five residents reported having a history of ISPA. Meanwhile, according to data from the Community Health Centre (Puskesmas), there were 699 cases of ISPA between January and August 2025. The community also raised concerns about several environmental problems, such as dust, noise and odours from waste pollution.

BOF-BF technology in the steel industry produces several pollutants such as silica dust, PM2.5, heavy metals mercury (Hg) and cadmium (Cd) that are harmful to the health of local residents. These pollutants can even cause chronic diseases if they accumulate in the body over a long period of time. This situation clearly violates the right to a healthy environment as guaranteed by Article 28H paragraph (1) of the 1945 Constitution, which states that every person has the right to physical and spiritual prosperity, to a place to live, and to a good and healthy environment, as well as the right to health services.

However, there are positive impacts felt by the community regarding the presence of the steel industry. These include receiving social assistance and an impact on income, as some residents of Tegal Ratu Village are able to work at the steel company. There are also economic opportunities for the procurement of goods or services in the vicinity of the company.

Meanwhile, RR Sri Gadis Pari Bekti from the Ministry of Industry revealed that her party has compiled a road map for the decarbonisation of the industrial sector, which involves 9 priority industrial sectors ( ), one of which is the iron and steel industry. This step is projected to reduce 289.7 million tCO2e emissions and achieve the net zero emissions target by 2050. To decarbonise the 9 industrial sub-sectors by 2050, significant costs are required, amounting to 260 billion USD.

There are five types of industrial decarbonisation strategies that can be implemented, particularly for the steel industry. One example is replacing fossil fuels such as coal with environmentally friendly materials. The BOF-BF technology that has been used for steel production can be replaced with gas and electricity-based Direct Reduced Iron (DRI)-Electric Arc Furnace (EAF). In addition to focusing on reducing emissions, the Ministry of Industry claims that it will evaluate pollutants that are equally dangerous and pose a risk to the health of communities living near industrial areas.

Ardoni Eka Putra, ST from the Ministry of Environment said that his party has implemented environmental policy regulations to achieve a green steel industry. One of them is the obligation for companies to report on AMDAL or Environmental Impact Analysis. AMDAL aims to identify, evaluate, and manage the negative impacts and maximise the positive impacts of industry on the environment. The AMDAL also includes RKL and RPL data. RKL or Environmental Management Plan is an effort to address the environmental impact of an activity, while RPL or Environmental Monitoring Plan is an effort to monitor that impact.  Ardoni stated that the Ministry of Environment strongly supports the Ministry of Industry’s initiative to include the aspect of ‘decarbonisation’ in the RKL-RPL for companies.

Ardoni also said that the Ministry of Environment had created a special platform called Amdalnet, which aims to improve the efficiency, transparency and accountability of AMDAL documents, not only for the companies themselves but also for the public. In addition, for members of the public who have complaints related to industrial activities, these complaints can be submitted in several ways. First, they can come directly to the Ministry of Environment and Forestry office, where they will be responded to by a deputy specialising in supervision and reporting. Second, through the Ministry of Environment and Forestry website, where there will be a helpdesk service. Third, through social media, as each deputy has their own Instagram account.

AEER Recommendations

Therefore, AEER provides several recommendations to achieve the decarbonisation of the steel industry. These include strengthening and enforcing circular regulations on scrap iron, drafting regulations on industrial decarbonisation, creating buffer zones around industrial areas, and establishing carbon borders or other trade protection mechanisms in Indonesia to protect Indonesian steel products in the national and global markets. Equally important is the conduct of public hearings and outreach activities regarding company operations, whether related to expansion or business growth, or processes that may pose risks to the community and environment.

Report can be downloaded through this link (Indonesian language):

https://bit.ly/DekarbonisasiBaja

Contact us: info@aeer.or.id, 62822 4976 1486