Blogspot by Dedy Ayunda: Energy Efficiency in Indonesia

The issue of energy consumption has been a growing interest across all industry sectors. Not only because of its immediate impact on production costs, but also because of its considerable impact on environmental sustainability, as mentioned in PP (Peraturan Pemerintah, regulation) no 70 in 2009 “That Every company that consume energy equal or more that 6000TOE shall do Energy Conservation”.

An improvement in energy efficiency within the organization can potentially bring significant business benefits.

  • Continuous improvement in production efficiency
  • Saving cost with directly impact to organization profit

Starting with the development of an energy consumption inventory, detailed auditing activities can be conducted to identify buildings and facilities with a particular focus on rationalizing their energy profiles. This is required because benchmarking is necessary when starting up a energy efficiency project  Field measurements (e.g. chiller plant, lightning, motor) will be also taken to quantify critical operating parameters, such as HVAC’s that can consume up to 60% of the energy in a building. Following the establishment of an energy consumption profile, the potential energy saving opportunities can be identified. Energy management strategy and particular energy reduction programs can be organized and planned with reference to energy audit results.

Subsequently, energy audit services can further provide a range of additional benefits. The findings of an energy audit can be a good reference for your management in supporting commercial decisions. You can acquire a sustainable reputation with your customers. A diverse range of industries have already experienced improved energy and production efficiency following energy efficiency program.

The major barriers on energy efficiency program are CAPEX (Capital Expenditure). Organization always has resistance on retrofitting energy efficiency equipment unless when the equipment is already damaged/or does not function properly. By delaying the implementation/retrofit process means that they wasting their money to pay the electricity bills every month. Other barriers are technology availability, space or manpower.

An example out of personal experience is a hotel in Jakarta, where they have facilities that are already 30 years old. The equipment consumes a lot of electricity since the equipment efficiency very poor their electricity bills is around 200.000$/months. The chief engineer is willing to replace their equipment, but he needs to request Fund/CAPEX to top management. Here we start with audit level 1 to identify their area of concern that they can reduce the energy consumption. We found that their chiller is not running properly, and by replacing their chiller with new technology chiller with high efficiency they can reduce the electricity bills to 20 % or save about 40.000 $/months. Replacing chiller system need investment about 1.000.000 $, so the return of Investment would be 25 Months. Here a problem was that the Top Management does not have the budget for replacing chiller. Therefore we try to find an investor to invest in the energy efficiency equipment/system and get benefits on the energy saving. Besides that we share saving with the client so they also get benefit from the earlier program.


Dedy Ayunda is Business development manager in Indonesia.