Towards Low-Carbon Economy: How Does Indonesia’s Industry Decarbonize its Assets

Fixed assets are signs of a significant source of carbon emissions in intensive carbon sectors. This study aims to investigate the impact of asset structure and asset utilization efficiency on the carbon emissions reduction in high polluting industry in Indonesia. The study uses the high-polluting industries in Indonesia in the period 2018-2022, as the sample. Secondary data were collected from the company's annual and sustainability report from the company's website. To test the hypotheses, the study used logistic regression. The results show asset structure does not have a significant effect on carbon emissions reduction, however, asset utilization efficiency has a negative effect on carbon emissions reduction. This study's results highlight the critical need for the government and research organizations to define the carbon emissions capacity of various fixed assets. As a result, it is easier for high-carbon industries to implement more detailed carbon management strategies and maximize their carbon advantages.