Energy Efficiency Helps Industries Save Up to Rp10.3 Billion Annually
- STIC CEGIR
- 14 hours ago
- 1 min read
The Sustainable Energy Transition in Indonesia (SETI) consortium revealed that implementing energy efficiency measures in the industrial sector could reduce operational costs by up to Rp10.3 billion per year, equivalent to 28.7 million kWh in energy savings. These findings resulted from an energy audit conducted across five business sectors, including pulp and paper, textiles, and footwear. The audit, carried out between June and August, is part of a collaboration between the Indonesian and German governments, along with partnerships involving Energy Service Companies (ESCOs) and technology providers. The Director of Energy Conservation at the Directorate General of New, Renewable Energy, and Energy Conservation (EBTKE) under the Ministry of Energy and Mineral Resources (ESDM), Hendra Iswahyudi, stated that the audit results showed energy efficiency improvements could significantly increase company profit margins while reducing carbon emissions by approximately 13,300 tons of CO₂ per year.
Johannes Anhorn, Lead for Industry Decarbonization at the GIZ Energy Programme Indonesia/ASEAN, emphasized that energy audits are a crucial first step for industries to identify efficiency opportunities and reduce production costs, noting that 20–30% of total industrial production costs are related to energy. Key recommendations include upgrading cooling systems using advanced cooling tower and chiller technologies, as well as installing variable speed drives (VSD) on motors and pumps to optimize energy consumption and maintain operational reliability. To turn these recommendations into action, a comprehensive strategy is needed—starting with low-cost, quick-return measures; partnerships with ESCOs through performance contract schemes; technological support from innovative solution providers; and the use of government policies and incentives. These efforts are an essential part of Indonesia’s broader journey toward industrial decarbonization and sustainable energy transition.
