In 2021, the manufacturing sector leads the economic growth in Indonesia, by contributing approximately 20% to the total Gross Domestic Product (GDP) (Statista Research Department, 2023). Also, manufacturing and construction sectors are responsible for around 21.46% of Indonesia’s total GHG emissions. The manufacturing sector plays a major role in the energy use in Indonesia, approximately 40% of the total final energy consumption in 2015 (Setwayan, 2020). As we navigate the challenges of a rapidly evolving global landscape, businesses in Indonesia have a unique opportunity to embrace energy efficiency practices, not only for cost savings but also to reduce environmental impact and enhance their long-term competitiveness.
Here are some key reasons why energy efficiency matters for the industrial sector in Indonesia:
1. Environmental Impact: The industrial sector contributes to greenhouse gas emissions and resource depletion.
2. Cost Savings: Energy costs can represent a substantial portion of operating expenses for industrial businesses.
3. Regulatory Compliance: The Indonesian government has been introducing regulations and incentives to encourage energy efficiency in the industrial sector.
4. Enhanced Competitiveness: Embracing energy efficiency reduces costs and improves operational efficiency and productivity.
5. Positive Public Perception: Increasing awareness among consumers, stakeholders, and international investors for sustainability and environmental stewardship.
Unfortunately, energy efficiency penetration is still facing challenges, such as limited knowledge & understanding of the benefits & opportunities and lack of technology knowledge, and this effort is not seen as a core business or as a “nice to have” program.
Therefore, we have started to work with CASE GIZ and ENERCOSS to build capacity by planning for a training that uses ISO 50006 to established energy baselines and work indicators in the manufacturing sector. Stay tuned for more news about this exciting activity!
