Supporting Innovative Mechanisms for Industrial Energy Efficiency Financing in Indonesia with Lessons for Replication in other ASEAN Member States programme

As the industrial sector in Indonesia is expected to grow steadily, the rise in energy demand is inevitable. If not addressed with the correct approach, this increase could result in higher emissions from the industrial sector, hindering progress in the national’s energy transition. 

Therefore, energy efficiency implementation is essential to reduce energy consumption from industrial sector, subsequently helping the government to reach net zero target by 2060. Unfortunately, adoption of energy-efficient technologies and measures is often limited by a wide range of barriers, including lack of awareness, limited access to finance, regulatory challenges, and insufficient capacity. 

This programme aims to increase Indonesia’s capacity to address these barriers by exploring innovative energy efficiency package for Indonesia, including de-risking mechanisms, new energy service business models, and technical assistance. 

ASEAN Centre for Energy is the executing entity to provide technical assistance in delivering the activities to develop new de-risking mechanisms and capacity building.