Indonesia Low GWP Refrigerants Market Report Size Share Growth Drivers Trends Opportunities & Forecast 2025–2030

Indonesia Low GWP Refrigerants Market Overview

• The Indonesia Low GWP Refrigerants Market is valued at USD 1.1 billion, based on a five-year historical analysis. This growth is primarily driven by increasing environmental regulations, rising awareness of climate change, the transition towards sustainable cooling solutions, and the strong shift to R32 in residential and light commercial air conditioning systems. The demand for low GWP refrigerants is further fueled by the need to comply with international agreements aimed at phasing out high-GWP substances.
• Key players in this market are concentrated in major urban centers such as Jakarta, Surabaya, and Bandung. These cities dominate due to their high population density, industrial activities, and significant commercial establishments that require efficient cooling solutions. The presence of leading manufacturers and distributors in these regions also contributes to their market dominance.
• The National Cooling Action Plan, issued by the Ministry of Energy and Mineral Resources, mandates the transition from high-GWP refrigerants such as R22 to low-GWP alternatives like R32 through incentives for inverter-based systems, certified technician training for mildly flammable refrigerants, and support for energy-efficiency projects in commercial facilities. This regulation requires industries to phase in low-GWP refrigerants in new installations and retrofits, with compliance monitored via import quotas and certification standards for handling A2L refrigerants.

Indonesia Low GWP Refrigerants Market Segmentation

By Type:The market is segmented into various types of refrigerants, including Hydrofluoroolefins (HFOs), Natural Refrigerants (Ammonia, CO2), Hydrocarbons (Propane, Isobutane), Blends, and Others. Among these, Hydrofluoroolefins (HFOs) are gaining traction due to their low environmental impact and efficiency. Natural refrigerants are also popular due to their sustainability and minimal global warming potential. R32 blends continue to lead adoption in new residential and light commercial air conditioning.

By End-User:The end-user segmentation includes Residential, Commercial, Industrial, Government & Utilities, and Others. The residential sector is the largest consumer of low GWP refrigerants, driven by the increasing adoption of energy-efficient air conditioning systems. The commercial sector follows closely, with businesses seeking sustainable solutions to meet regulatory requirements and consumer preferences, including upgrades in shopping centres and hospitals.

Indonesia Low GWP Refrigerants Market Competitive Landscape

The Indonesia Low GWP Refrigerants Market is characterized by a dynamic mix of regional and international players. Leading participants such as PT. Daikin Air Conditioning Indonesia, PT. Refrigeration Indonesia, PT. AHI Indonesia, PT. Chemours Indonesia, PT. Honeywell Indonesia, PT. Arkema Indonesia, PT. Mitsubishi Electric Indonesia, PT. LG Electronics Indonesia, PT. Panasonic Gobel Indonesia, PT. Gree Electric Appliances Indonesia, PT. Samsung Electronics Indonesia, PT. Emerson Electric Indonesia, PT. Trane Indonesia, PT. Sanyo Indonesia, PT. Carrier Indonesia contribute to innovation, geographic expansion, and service delivery in this space.

Indonesia Low GWP Refrigerants Market Industry Analysis

Growth Drivers

• Increasing Environmental Regulations:Indonesia's commitment to the Paris Agreement has led to stricter environmental regulations, particularly concerning greenhouse gas emissions. The government aims to reduce emissions by 29% by 2030, which has prompted industries to adopt low GWP refrigerants. In future, the Ministry of Environment and Forestry is expected to enforce regulations that will limit the use of high-GWP refrigerants, driving a shift towards more sustainable alternatives, thus enhancing market growth.
• Rising Demand for Energy-Efficient Solutions:The Indonesian government has set a target to increase energy efficiency by 20% by 2025, which is driving demand for energy-efficient refrigeration solutions. The energy consumption of refrigeration systems is projected to account for 30% of total energy use in commercial sectors in future. This demand is pushing manufacturers to innovate and adopt low GWP refrigerants that offer better energy efficiency, thereby supporting market expansion.
• Technological Advancements in Refrigeration:The refrigeration industry in Indonesia is witnessing rapid technological advancements, particularly in the development of low GWP refrigerants. Innovations such as hydrocarbon-based refrigerants and advanced cooling technologies are gaining traction. In future, it is estimated that the adoption of these technologies will increase by 15%, driven by both consumer demand and regulatory pressures, thereby enhancing the overall market landscape for low GWP refrigerants.

Market Challenges

• High Initial Investment Costs:The transition to low GWP refrigerants often involves significant upfront costs, including the purchase of new equipment and retrofitting existing systems. In future, the average cost of retrofitting a refrigeration system is projected to be around IDR 50 million (approximately USD 3,500). This financial barrier can deter businesses, particularly small and medium enterprises, from making the switch, thus hindering market growth.
• Limited Availability of Low GWP Alternatives:Despite the growing demand for low GWP refrigerants, the availability of suitable alternatives remains a challenge. In future, it is estimated that only 30% of refrigeration systems in Indonesia will utilize low GWP refrigerants. This limited supply can restrict market growth, as businesses may struggle to find compliant products that meet their operational needs while adhering to environmental regulations.

Indonesia Low GWP Refrigerants Market Future Outlook

The future of the low GWP refrigerants market in Indonesia appears promising, driven by increasing environmental awareness and regulatory support. As the government intensifies its efforts to phase out high-GWP refrigerants, the market is expected to see a significant shift towards sustainable alternatives in future. Additionally, advancements in technology and growing consumer demand for energy-efficient solutions will further propel market growth. The integration of IoT in refrigeration systems is anticipated to enhance operational efficiency, making low GWP refrigerants more attractive to various sectors.

Market Opportunities

• Expansion of Cold Chain Logistics:The cold chain logistics sector in Indonesia is projected to grow by 12% annually, driven by the increasing demand for perishable goods. This growth presents a significant opportunity for low GWP refrigerants, as businesses seek to enhance their refrigeration systems to comply with environmental regulations while ensuring product quality.
• Government Incentives for Green Technologies:The Indonesian government is expected to introduce various incentives in future to promote the adoption of green technologies, including low GWP refrigerants. These incentives may include tax breaks and subsidies, encouraging businesses to invest in sustainable refrigeration solutions, thereby expanding the market potential significantly.