05 November 2025

Strengthening Capacity for Textile Industry Decarbonization in Indonesia

Strengthening Capacity for Textile Industry Decarbonization in Indonesia

Picture of Yusuf Utomo, Senior Associate

Yusuf Utomo, Senior Associate

Picture of Evano Djatmiko, Associate

Evano Djatmiko, Associate

Picture of Ruth Reyes, Marketing Associate

Ruth Reyes, Marketing Associate

A group photo capturing participants from Ever Shine Tex, Pan Brothers, Busana Apparel Group, Picanol, the Indonesia Textile Association, VF Corp, PT Trimula Warnajaya, and Climate Smart Ventures during the capacity-building workshop

05 November 2025 – Jakarta, Indonesia – A few weeks ago, Climate Smart Ventures (CSV), in collaboration with international engineering firm Haskoning Indonesia, held a capacity-building workshop aimed at unlocking decarbonization opportunities in Indonesia’s textile industry. Held on September 22, the event sought to raise awareness among textile companies about the importance of transitioning to low-carbon operations and the technical and financial pathways available to support this shift. The workshop is part of CSV’s broader initiative to assist industrial players in Indonesia through technical and financial advisory services, helping them design and implement effective decarbonization projects that advance the country’s climate and sustainability goals.

The textile industry is one of Indonesia’s largest export-oriented sectors, employing around 2 million workers and valued at US$13.8 billion in 2024.¹ The industry is highly energy-intensive, requiring substantial thermal energy for core processes, such as wet-processing for bleaching, dyeing, and printing, all of which are still heavily reliant on fossil fuels.² This dependence not only amplifies the sector’s environmental footprint but also exposes companies to economic risks from volatile energy prices and emerging carbon regulations, including the European Union’s Carbon Border Adjustment Mechanism (CBAM). As many manufacturers in the industry supply global apparel brands that have committed to reducing their Scope 3 emissions,³ Indonesia’s textile sector faces mounting pressure to decarbonize.

Many textile companies continue to face barriers to decarbonization, including limited access to technical knowledge, insufficient financing options, and lack of clarity on available incentives. To address these challenges, the workshop showcased practical solutions such as energy efficiency measures, renewable energy adoption, and innovative financing mechanisms designed to support implementation.

The session brought together 20 participants representing textile companies, including Ever Shine Tex, Pan Brothers, Busana Apparel Group, Picanol, Indonesia Textile Association, VF Corp, and PT Trimula Warnajaya, creating a collaborative platform for industry practitioners to jointly explore decarbonization strategies. CSV led discussions on financing mechanisms, while Haskoning Indonesia presented technical pathways focusing on energy efficiency and clean technology options.

CSV Senior Associate Yusuf Utomo presenting financing mechanisms for textile industry decarbonization

Participants gained valuable insights from Climate Smart Ventures and Haskoning Indonesia on both the technical and financial solutions for decarbonization. The workshop highlighted not only immediate actions, such as improving energy efficiency, but also longer-term strategies, including renewable energy integration and clean technology adoption. The high level of engagement and exchange of ideas demonstrated participants’ strong commitment to advancing sustainability across their operations.

One participant from the Indonesia Textile Association emphasized, “This session was valuable not only for knowledge-sharing, but also for giving our members the confidence that decarbonization is achievable when supported by the right technical pathways and financing mechanisms.”

Another participant from a textile company shared, “The workshop helped us clearly see both the technical solutions and the financing options available. It was very insightful, and the open Q&A gave us the chance to raise the real challenges we’re facing on the ground.”

CSV looks forward to deepening its collaboration with partners in Indonesia to accelerate industrial decarbonization in the textile sector. To learn more or explore collaboration opportunities, please contact Yusuf Utomo, CSV’s Indonesia Lead, at yusuf@climatesmartventures.com.

Footnotes

¹ World Fashion Exchange. “Indonesia’s Journey to Global Textile Prominence: Key Statistics.” World Fashion Exchange Blog, March 8, 2024. https://www.worldfashionexchange.com/blog/indonesia-textile-growth-journey/

² World Resources Institute. “Mobilizing Clean Energy Finance in the Industrial Sector in Indonesia and Vietnam.” Technical Perspective, July 29, 2025. https://www.wri.org/technical-perspectives/industrial-decarbonization-finance-indonesia-vietnam.

³ World Resources Institute. “Mobilizing Clean Energy Finance in the Industrial Sector in Indonesia and Vietnam.” Technical Perspective, July 29, 2025. https://www.wri.org/technical-perspectives/industrial-decarbonization-finance-indonesia-vietnam.

About Climate Smart Ventures

Climate Smart Ventures (CSV) is an advisory firm advancing the energy transition in Asia. Our expertise and projects span coal to clean utility-level energy transition, industrial decarbonization, grid transformation, transition finance, and government-level policy recommendations. We also provide ESG and sustainability advisory services, focused on decarbonization and management of environmental and social impacts. Ecosystem building and collaboration are key elements of our firm, which partners closely with the region’s leading corporates and power portfolio owners, investors, off-takers, and others. For more information, visit https://climatesmartventures.com.