Transforming Energy Management for Sustainable Growth in Indonesia

The energy management market is expected to reach a revenue of US$24.5 million by 2024. With an annual growth rate (CAGR) of 10.36% between 2024 and 2028, the market is predicted to grow to US$36.4 million by the end of the period. This growth is driven by the increasing adoption of households actively using energy management technologies, where the number of users is projected to reach 20.6 million households by 2028. The household market penetration rate is expected to jump from 7.2% in 2024 to 25.1% in 2028, with the average income per household using Smart Home technology estimated at US$4.49.

Energy Saving Potential in Indonesia’s Industrial Sector

Industries in Indonesia have significant energy saving potential in various sectors. Based on the data, the textile sector has the highest energy saving potential, with a range between 20% to 35%, followed by the steel industry with a maximum saving potential of up to 32%. In the petrochemical sector, the energy saving potential is in the range of 12% to 17%. This represents a huge opportunity for these industries to improve energy efficiency through the application of technology and better energy management.

In addition, energy consumption projections for key industries in Indonesia show a significant upward trend until 2050. The metal and cement industries are expected to be the largest energy consumers, with consumption reaching 65 Mtoe (Million Tonnes of Oil Equivalent) and 60 Mtoe in 2050. The food industry is also predicted to see an increase in energy consumption, reaching 38 Mtoe by the same year. This emphasizes the importance of effective energy saving strategies to reduce environmental impact while maintaining the industry’s competitiveness in the future.

Indonesian Government’s Commitment to Energy Conservation

The Government of Indonesia has demonstrated a strong commitment to energy conservation as part of efforts to strengthen the economy, improve competitiveness, and achieve energy security. In addition, this step also plays an important role in facing the challenges of global climate change through reducing CO2 emissions. Law of the Republic of Indonesia No. 30/2007 on energy emphasizes that energy conservation is a systematic, planned, and integrated effort to conserve domestic energy resources and improve the efficiency of their use.

In the national energy policy, Indonesia targets energy conservation until 2025, with the aim of reducing energy intensity by 1% each year and achieving final energy savings of 17% by 2025. To achieve this target, the government is implementing various strategies, including energy management for users with consumption >6000 tons oil equivalent (TOE) per year, energy efficiency standards, and labels for appliances. In addition, the government encourages private investment in energy conservation, increases public awareness, and strengthens human resource capacity and technology.

Until 2017, Indonesia has achieved some progress, with primary energy intensity reaching 400 SBM/billion rupiah from the target of 429 SBM/billion rupiah, and final energy savings of 231 SBM/billion rupiah. CO2 emission reduction also exceeded the target, reaching 43.802 million tons of CO2 or 123% of the set target. Investment in energy conservation also exceeded the target, reaching USD 0.00623 billion. The implementation of energy management system and Minimum Energy Efficiency Standard and Label (SKEM) has contributed significantly to the achievement of the energy conservation target.

Implementation of Energy Management System

The implementation of an Energy Management System (EMS) is becoming increasingly important amidst the growing need for efficiency and sustainability in energy use. With a systematic framework, SME helps organizations identify energy saving opportunities, optimize processes, and reduce carbon emissions. Through this approach, companies can not only save operational costs, but also support global initiatives to combat climate change. Here are some examples of SME implementations that have been successfully implemented in various sectors, demonstrating their positive impact on efficiency and the environment.

Slamet Bratanata Building – Ministry of Energy and Mineral Resources Indonesia

Slamet Bratanata Building, owned by the Indonesian Ministry of Energy and Mineral Resources, is the first public building in Indonesia to successfully implement an energy management system in accordance with the ISO 50001 standard.

To implement the ISO 50001 energy management system, the energy management team has carried out various activities, such as developing standard operating procedures, work instructions, and appointing a person in charge on each floor to oversee energy management activities. In addition, an energy efficiency competition held every two years aims to encourage energy-saving habits on each floor. An Investment Grade Audit (IGA) conducted in 2018 resulted in recommendations for the implementation of passive and active energy-saving technologies. Active technologies implemented include building automation systems, mini chiller installations, LED lighting, as well as energy monitoring system applications. Meanwhile, the passive design included the installation of window film and space redesign with energy-saving concepts.

The implementation of this energy management system successfully reduced energy consumption by 613,188kWh between 2018-2020, with the Energy Efficiency Index dropping to 129.06 kWh/m2/year in 2020. In addition, greenhouse gas emissions were reduced by 588.94 tons of CO2 equivalent. These findings can be an important reference for further implementation of the ISO 50001 standard in similar public buildings, as well as in the building sector in general. The growing application of energy management in this sector has the potential to trigger economic recovery while strengthening energy security in Indonesia.

PT Pupuk Kalimantan Timur (Pupuk Kaltim)

PT Pupuk Kalimantan Timur (Pupuk Kaltim), as a state-owned company under Pupuk Indonesia Holding Company (PIHC), successfully implemented the ISO 50001 energy management system at its PKT-3 and PKT-1A plants that produce ammonia, urea, and utilities. This implementation aims to improve the company’s energy performance through a series of initiatives that have already made a significant impact in saving energy costs and reducing carbon emissions.

During the period of energy performance improvement, Pupuk Kaltim recorded an energy performance improvement of 5.45% for PKT-3 and 0.65% for PKT-1A, with an aggregate improvement of 3.76%. Within 2.5 years for PKT-3 and 1 year for PKT-1A, the company managed to save USD 3.9 million in energy costs. The implementation of the energy management system cost USD 91,830, but provided total energy savings of 866,262 GJ, with a reduction in CO2 emissions of 43,565metric tons.

This achievement not only demonstrates Pupuk Kaltim’s commitment in improving energy efficiency, but also strengthens the company’s contribution in supporting sustainability and environmental impact reduction in the Indonesian petrochemical industry. This implementation serves as a successful example for other companies in adopting energy management systems to achieve better and sustainable energy performance.

The Indonesian government has demonstrated its commitment to energy conservation by setting ambitious energy saving and intensity reduction targets. The implementation of Energy Management Systems (EMS), such as those implemented at Slamet Bratanata Building and PT Pupuk Kalimantan Timur, has proven effective in improving energy efficiency and reducing carbon emissions.

TransTRACK comes as an innovative solution to optimize energy management in your industrial fleet. With TransTRACK’s advanced technology, companies can:

• Monitor Energy Consumption in Real-Time: TransTRACK provides a monitoring platform that allows you to see your fleet’s energy usage in real time, helping to quickly identify and address energy waste.
• Manage Fleet Maintenance: TransTRACK’s Vehicle Maintenance System (VMS) feature helps schedule and manage fleet maintenance efficiently, ensuring vehicles operate at optimal conditions and reducing unnecessary energy consumption.
• Improves Operational Efficiency: With an integrated fleet management system, TransTRACK enables route optimization and load management, which contributes to energy savings and carbon footprint reduction.
• Supports Compliance with Energy Regulations: TransTRACK helps companies meet energy efficiency and conservation standards set by the government by providing the data and reports needed.

Let’s make energy efficiency a reality in your fleet! Join TransTRACK and leverage our technology to optimize energy management in every industry sector. Contact us today to start the journey towards better energy savings and sustainability.