Enviro News Asia, Jakarta — Heat pump technology could help Indonesia reduce industrial emissions and fossil fuel consumption by replacing conventional boilers in production processes that require low- to medium-temperature heat, according to the Institute for Essential Services Reform (IESR).
The assessment was presented by IESR in its analysis of opportunities for industrial decarbonization as Indonesia works toward a low-carbon economy. The country’s Ministry of Industry has targeted net-zero emissions for the industrial sector by 2050, ahead of the national 2060 target.
Indonesia’s industrial sector plays a major role in the economy, contributing about 19.07 percent of national gross domestic product. However, manufacturing remains a significant consumer of fossil-based energy, creating pressure to reduce emissions without undermining productivity and competitiveness.
IESR identified industrial process heat as a major area for emissions reduction. Heating processes can account for up to 45 percent of total energy consumption in Indonesia’s manufacturing sector.
The decarbonization opportunity is particularly significant for processes requiring temperatures below 200 degrees Celsius. These processes commonly rely on boilers fueled by coal, natural gas, or oil and therefore provide greater opportunities for electrification than high-temperature processes above 500 degrees Celsius.
How Heat Pumps Reduce Energy Use
Heat pumps use electricity to transfer heat from one source to another rather than producing heat through direct fossil-fuel combustion. The technology operates on a principle similar to an air conditioner or refrigerator, but redirects heat for productive industrial use.
IESR estimates that heat pumps can achieve a coefficient of performance (COP) of around 3–4. In practical terms, one unit of electricity can produce approximately three to four units of heat, depending on operating conditions.
This efficiency makes heat pumps a potential option for industries seeking to replace fossil-fuel boilers while reducing energy consumption.
IESR estimates that heat pump deployment could reduce energy consumption by approximately 30–50 percent, depending on the industrial sector and the technology being replaced. Estimated emissions mitigation costs range from US$49 to US$160 per tonne of CO₂.
Why Adoption Remains Limited
Despite the potential, heat pump adoption in Indonesia remains relatively limited. Many industrial facilities have used coal-fired boilers for years, making the transition to electric heating technically and financially challenging.
Replacing existing systems can require modifications to industrial facilities, technical assessments, new equipment, and additional investment. Limited market penetration and experience with the technology also remain barriers to wider deployment.
IESR nevertheless sees heat pumps as a promising option for accelerating industrial electrification, particularly where production processes require low- and medium-temperature heat.
What It Means for Indonesia
The technology could contribute to Indonesia’s broader industrial decarbonization strategy by reducing fossil fuel use while improving energy efficiency. Its benefits could extend beyond emissions reductions by helping industries manage energy costs and maintain competitiveness as global markets increasingly move toward low-carbon production.
However, heat pumps cannot replace fossil fuels across all industrial processes. High-temperature applications will require other technological solutions because commercially available electrification options remain more limited in that segment.
IESR therefore emphasizes the need to identify industrial processes where heat pumps are technically feasible and economically viable. Wider deployment will also require investment, technical expertise, supportive policies, and an increasingly reliable and cleaner electricity supply.
As Indonesia pursues its 2050 industrial net-zero target, heat pumps could become one component of a broader strategy to electrify suitable industrial processes and reduce the sector’s dependence on fossil fuels. (*)
