Source: KarawangPos 
Edited by: World Boiler Expo

As Indonesia accelerates industrial energy transition and decarbonization, industrial heat pumps are emerging as a technology with growing potential in the industrial thermal energy sector.

Under the Sustainable Energy Transition in Indonesia (SETI) initiative, an industrial energy-efficiency demonstration project has been launched to explore the application of high-temperature heat pump technology in industrial processes. The initiative provides a practical reference for reducing fossil-fuel consumption and improving energy efficiency across Indonesia's manufacturing sector.

According to KarawangPos, the SETI project, in cooperation with Indonesia's Ministry of Energy and Mineral Resources and the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE), demonstrated an industrial heat pump application at KIIC (Karawang International Industrial City) on July 29, 2026. The project used PT Freyabadi Indotama as an industrial case study and aims to provide experience that could potentially be replicated in other sectors.

Growing Demand for Industrial Energy-Efficiency Solutions

Manufacturing is one of Indonesia's major energy-consuming sectors, with many industrial facilities still relying on fossil fuels to meet their process heating requirements.

Traditional oil-fired and gas-fired boilers continue to play an important role in supplying steam and hot water. However, rising energy costs, carbon-reduction targets and increasing demand for energy efficiency are encouraging industrial users to explore alternative heating technologies.

Indonesian authorities have also strengthened the country's energy-conservation framework. Under Government Regulation No. 33 of 2023, relevant enterprises are required to conduct energy audits and take follow-up measures based on the resulting recommendations.

For industrial companies, energy efficiency is therefore becoming not only an environmental consideration, but also an important factor in reducing operating costs and maintaining competitiveness.

Heat Pumps Provide an Alternative for Selected Boiler Applications

The SETI project demonstrates how industrial heat pump technology can be integrated into specific industrial heating processes.

At the PT Freyabadi Indotama site, an industrial heat pump was applied to meet the facility's hot-water requirements. According to project information reported by KarawangPos, the system achieved a Coefficient of Performance (COP) of 3.47, with an estimated annual reduction of approximately 145.5 tonnes of CO₂ emissions and potential annual operating-cost savings of around IDR 744.2 million.

Project participants also noted that heat pumps are not suitable for every industrial application. Their technical and economic feasibility depends on factors such as the site's heat load, required temperature, production process and existing energy structure.

At present, industrial applications requiring approximately 50–80°C hot water are among the scenarios where heat pump technology shows particular potential.

Southeast Asia's Industrial Boiler Retrofit Market Could Gain Momentum

From a broader market perspective, Indonesia's industrial heat pump demonstration sends an important signal for the Southeast Asian industrial thermal energy market.

The future of industrial heating may not necessarily involve completely replacing existing boilers. Instead, many industrial facilities could adopt integrated energy-efficiency upgrades, combining existing boiler systems with:

• Industrial heat pumps
• Waste heat recovery
• Boiler efficiency optimization
• Alternative fuels
• Renewable energy
• Smart boiler controls
• Energy management systems

This approach could provide manufacturers with a more flexible pathway to reduce fuel consumption, operating costs and carbon emissions while maintaining existing production capabilities.

Industries such as food processing, textiles, chemicals, paper, agricultural processing and other manufacturing sectors could become important application areas for these technologies as energy-efficiency requirements continue to evolve across Southeast Asia.

Industrial Thermal Energy Moving Toward a Low-Carbon Future

The development of industrial heat pumps highlights a broader transformation taking place in the industrial heating sector.

Industrial boilers are increasingly evolving from conventional standalone heating equipment toward high-efficiency, low-carbon, intelligent and multi-energy systems.

The integration of boilers with heat pumps, waste heat recovery, renewable fuels, digital controls and energy management technologies could create new opportunities for both equipment manufacturers and industrial end users.

For boiler manufacturers, heat pump companies, waste heat recovery providers, automation companies, energy-service providers and industrial users, this transition is creating new possibilities for technology integration, equipment upgrades and cross-sector cooperation.

World Boiler Expo Continues to Follow Global Industrial Heating Trends

World Boiler Expo closely follows developments in industrial boilers, thermal energy technologies, energy-efficiency upgrades and low-carbon heating solutions worldwide.

The Indonesian SETI demonstration provides a valuable example of how emerging heating technologies can complement or replace conventional fossil-fuel-based systems in suitable industrial applications.

As Southeast Asia continues its industrial energy transition, the combination of efficient boilers, heat pumps, renewable fuels, waste heat recovery and intelligent energy management is expected to become an increasingly important direction for the future of industrial thermal energy.

Source: KarawangPos, “Heat Pump Tunjukkan Potensi Dekarbonisasi Industri, SETI Buka Peluang Replikasi di Berbagai Sektor”,