The FGD set the stage for insightful discussions on the critical role of energy efficiency in achieving the nation’s decarbonization goals. The event also serves as a connecting platform for building owners, ESCOs, and financial institutions to support and drive energy efficiency initiatives in Indonesia. Guided by interactive tools like Mentimeter and moderated discussions, the FGD underscored the importance of cross-sectoral collaboration, robust regulatory frameworks, and innovative financing mechanisms in advancing Indonesia’s energy transition.
The JETP Secretariat and Energy Efficiency & Electrification Working Group (E3WG) pave the way for a sustainable and energy-efficient prospect by addressing challenges and identifying opportunities. This further solidifies Indonesia’s commitment to achieving its decarbonization targets and promoting inclusive growth in the energy sector.
The FGD featured opening remarks from representatives of three key ministries within the Government of Indonesia (GoI): the Ministry of Public Works and Public Housing, the Ministry of Home Affairs, and the Ministry of Energy and Mineral Resources.
Dian Irawati, Director of Housing and Settlement Engineering Development at the Ministry of Public Works and Public Housing stated, “The Indonesian government has made various efforts to reduce GHG emissions, including implementing green buildings (BGH), promoting energy-saving measures, and utilizing renewable energy.”
Eva Novianti, representing the Director of Synchronization of Regional Government Affairs I at the Directorate General of Regional Development, Ministry of Home Affairs, highlighted, “The implementation of Green Buildings (BGH) can succeed only through multi-stakeholder collaboration, including regional partnerships with government and non-government entities; Law Number 23/2014 and Government Regulation (PP) 28/2018 provide the legal framework for such regional cooperation.”
Andi Luxbinatur, representing the Director of Energy Conservation at the Directorate General of New, Renewable Energy and Energy Conservation, Ministry of Energy and Mineral Resources, shared insights on energy conservation strategies in the building sector. He explained, “The government’s strategy is to implement energy management systems among energy providers and users based on Government Regulation (PP) No. 33/2023.”
These remarks underscore Indonesia's commitment to fostering collaboration, implementing robust regulations, and advancing energy conservation strategies to support the nation’s sustainable development goals.
Notable contributions as speaker came from PT. SMI and the OECD, while active participation came from public institutions and State-Owned Enterprises (SOEs). The speaker from the private sector was represented by the Sinarmas Group, which shared valuable best practices during the discussions, further enriching the dialogue and fostering actionable insights.
A highlight of the event was a facilitation platform, which organized a session to connect cross-sectoral stakeholders among building owners, ESCOs, and Financial Institutions (FIs). This unique approach facilitated meaningful collaborations, enabling stakeholders to explore project opportunities and accelerate energy efficiency initiatives in the commercial building sector. Key findings from the FGD emphasized the critical role of energy efficiency in achieving Indonesia’s decarbonization targets. Recognizing this situation, the Ministry of Public Works and Housing (PUPR) has introduced Green Building (Bangunan Gedung Hijau - BGH) regulations to promote sustainable development. These regulations aim to significantly reduce electricity consumption while encouraging environmentally responsible construction and operation practices.
A robust regulatory framework supports these efforts. Key regulations introduced by MEMR and PUPR include PP 16/2021 on Buildings and PP 33/2023 on Energy Conservation. Non-compliance with these regulations can result in the disapproval of a Building Operation Certificate (SLF), underscoring the need for adherence to established policies.
Implementing energy efficiency measures presents a unique opportunity to enhance collaboration and capacity building across key stakeholders. Local governments and provincial-owned enterprises (BUMDs) are crucial in advancing energy efficiency initiatives across Indonesia. However, unique considerations often arise when it comes to financing these ambitions. For instance, regulations typically prevent local governments from borrowing from commercial banks due to the inability to provide collateral. Similarly, BUMDs often operate with moderate balance sheets, making it challenging to finance capital-intensive investments upfront.
Energy Service Companies (ESCOs) present a promising solution to address these challenges. By offering comprehensive, end-to-end support, ESCOs enable local governments and Provincial Owned Enterprises (BUMDs) to implement energy efficiency projects more effectively and sustainably. These partnerships hold significant potential to accelerate progress in energy efficiency, but unlocking their full value requires further collaboration and innovative contractual models. The Ministry of Home Affairs is taking proactive steps to develop a regulatory framework that facilitates seamless cooperation between local governments and businesses. In addition, agreements among the Ministry of Energy and Mineral Resources, the Ministry of Public Works and Public Housing, and the Ministry of Home Affairs are being prepared to streamline loan applications and ensure smooth program implementation, creating a strong foundation for advancing energy efficiency initiatives in government buildings. These discussions and initiatives highlight the critical importance of energy efficiency in Indonesia’s energy transition. Indonesia is making significant strides toward a sustainable and energy-efficient future by addressing challenges and leveraging available opportunities.