CBAM and Southeast Asia: Aluminium and Fertiliser Exporters in Indonesia and Malaysia
Indonesia and Malaysia face CBAM exposure primarily through aluminium, steel, and fertiliser exports to the EU. Indonesia has a carbon tax (approximately EUR 1.70/tCO2) that may provide a minimal CBAM deduction. Malaysia's Press Metal is a significant aluminium exporter with actual emissions well below the default.
Indonesia CBAM Exposure
| Sector | Key companies | Grid factor (tCO2/MWh) | Typical actual (tCO2/t) |
|---|---|---|---|
| Steel (EAF) | Krakatau Steel, Gunawan Dianjaya | 0.87 | 1.20–1.80 |
| Fertilisers (Ammonia) | Pupuk Indonesia, Petrokimia Gresik | N/A (gas-based) | 1.80–2.20 |
Malaysia CBAM Exposure
| Sector | Key companies | Grid factor (tCO2/MWh) | Typical actual (tCO2/t) | Saving vs default |
|---|---|---|---|---|
| Aluminium (primary) | Press Metal Aluminium | 0.62 | 8.00–10.00 | EUR 157–288/t |
| Steel (EAF) | Lion Steel, Southern Steel | 0.62 | 0.60–0.90 | EUR 84–103/t |
Frequently Asked Questions
Does Indonesia's carbon tax offset CBAM?
Indonesia's carbon tax (IDR 30/kgCO2 ≈ EUR 1.70/tCO2) may qualify for a minimal CBAM deduction under Article 9 — but the deduction is very small relative to the EUR 65.42/tCO2 CBAM certificate price.
What is Indonesia's grid emission factor?
Indonesia's grid emission factor is approximately 0.87 tCO2/MWh — high due to coal dominance.
What is Malaysia's CBAM exposure for aluminium?
Press Metal is Malaysia's largest aluminium producer. Using Malaysia's grid (0.62 tCO2/MWh), actual embedded carbon is typically 8–10 tCO2/t — saving EUR 157–288/t vs the 12.40 default.
Does CBAM apply to Indonesian fertiliser exports?
Yes. Indonesian ammonia and urea exports to the EU are covered by CBAM. Pupuk Indonesia is Indonesia's largest fertiliser producer and a significant EU exporter.
Where can Indonesian and Malaysian manufacturers find ISO 14065 accredited verifiers?
See the Indonesia & Malaysia verifier directory at /verification-directory/indonesia-malaysia/ for KAN ISO 14065 accredited CBAM verification firms.
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