Economic, Regulatory, and Environmental Perspectives on IMO Net-Zero Shipping Regulations in Indonesia and Southeast Asia

 by Setyawati Fitrianggraeni and Orima Melati Davey

Overview

In April 2025, a legally binding framework was approved by the International Maritime Organization (IMO) to guide the shipping industry toward net-zero emissions by around 2050. This framework introduces a mandatory marine fuel standard and a greenhouse gas emissions pricing mechanism for all large oceangoing vessels over 5,000 gross tonnage—a group responsible for approximately 85 percent of global CO₂ emissions. Southeast Asia, with Indonesia playing a central role as a maritime crossroads, is expected to be significantly affected. This article examines the key economic, regulatory, and environmental aspects of this transition.

Economic Impact on the Maritime Sector

IMO’s net-zero measures are set to reshape shipping costs and trade dynamics in the region. A central component is a new carbon levy applied to ship emissions. Beginning in 2028, vessels that do not meet the new fuel standards will be required to pay a surcharge—around USD 380 per tonne for the highest-emitting emissions and USD 100 per tonne for additional emissions beyond a defined threshold. Such surcharges are intended to discourage the use of conventional heavy fuel oil. However, it is anticipated that revenues from this levy, projected to reach between USD 30 and 40 billion by 2030, will be reinvested to support the transition toward cleaner shipping practices, including subsidizing low- and zero-emission fuels. Over time, shipping companies may find cost efficiencies by optimizing routes and improving vessel efficiency, which could help mitigate increased operational costs.

Regulatory Alignment and Policy Adaptation

Southeast Asian nations, including Indonesia, are required to align their domestic regulations with the amended provisions of MARPOL Annex VI. This process involves updating national shipping standards and port state control procedures before the anticipated full implementation in 2027. Countries such as Indonesia, Malaysia, Singapore, Thailand, and the Philippines are reviewing their maritime laws and environmental policies to establish the necessary systems for monitoring fuel emissions, enforcing penalties for non-compliance, and managing carbon credit schemes. Regional coordination through forums like ASEAN Maritime Transport Working Group will likely be crucial to sharing best practices and establishing common frameworks for effective implementation.

Environmental Benefits and Climate Advantages

Reducing shipping emissions is a critical element in global efforts to combat climate change. The IMO framework is expected to facilitate at least a 20-percent reduction in shipping emissions by 2030 relative to 2008 levels, thereby contributing to the broader goals under the Paris Agreement. Cleaner fuel use and improved vessel efficiency are anticipated to reduce not only CO₂ levels but also lower emissions of sulfur oxides, nitrogen oxides, and particulate matter. Such improvements are projected to enhance air quality in port cities and along major shipping lanes, with additional benefits for coastal ecosystems, including coral reefs that support fisheries and tourism. Environmental gains are expected to increase over time with more stringent future targets and advanced technologies.

Conclusion

In summary, the economic adjustments, regulatory overhauls, and environmental improvements brought by the IMO net-zero regulations are likely to have considerable implications for Indonesia and the broader Southeast Asian maritime sector. Achieving a balanced transition will require coordinated national and regional policies as well as investments in technological innovations to support a sustainable shipping future.

References :

ASEAN Secretariat. (2024). ASEAN Transport Strategic Plan 2016–2025: Mid-Term Review. Available at asean.org (check for updates on maritime policy).

International Maritime Organization. (2023). 2023 IMO Strategy on Reduction of GHG Emissions from Ships. Adopted at MEPC 80, July 2023. Available at www.imo.org.[](https://www.imo.org/en/MediaCentre/PressBriefings/pages/Revised-GHG-reduction-strategy-for-global-shipping-adopted-.aspx) (http://www.imo.org.[](https://www.imo.org/en/MediaCentre/PressBriefings/pages/Revised-GHG-reduction-strategy-for-global-shipping-adopted-.aspx))

International Maritime Organization. (2023). Guidelines on Life Cycle GHG Intensity of Marine Fuels. Adopted at MEPC 80, July 2023. Available at www.imo Ascot (www.imo.org).[](https://www.imo.org/en/MediaCentre/PressBriefings/pages/Revised-GHG-reduction-strategy-for-global-shipping-adopted-.aspx) (http://www.imo.org).[](https://www.imo.org/en/MediaCentre/PressBriefings/pages/Revised-GHG-reduction-strategy-for-global-shipping-adopted-.aspx))

International Maritime Organization. (2025). Report of the Marine Environment Protection Committee on Its 83rd Session (MEPC 83), 7–11 April 2025. Available at www.imo.org (forthcoming or press release).

UNCTAD. (2023). Review of Maritime Transport 2023. United Nations Conference on Trade and Development. Available at unctad.org.

ASEAN Secretariat. (2024). ASEAN Transport Strategic Plan 2016–2025: Mid-Term Review. Available at asean.org (check for updates on maritime policy).

*Setyawati Fitrianggraeni serves as Managing Partner at Anggraeni and Partners in Indonesia and Assistant Professor at the Faculty of Law, University of Indonesia, while pursuing her PhD at the World Maritime University in Malmö, Sweden, where she leads a legal research team focused on Ocean Maritime Climate, including researchers Orima Melati Davey 

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