Due to rapid economic growth, rising population numbers and growing prosperity, the demand for energy in Indonesia is rising continuously. The government and the state-owned energy service provider PLN are struggling to keep up with this development and to increase electricity capacities at the same pace. After the transport sector, the manufacturing industry comes second in the ranking of the country's largest energy consumers. With a share of approx. 31% of the total energy demand, there is an interesting business potential for energy efficiency solutions.

In the past, subsidizing energy prices provided few incentives for companies to invest in measures to improve energy efficiency. The consequences are, for example, that large parts of the industry operate with partly outdated and less energy-efficient infrastructure. The pressure to reduce fuel imports and CO2 emissions has prompted the Indonesian government to reduce energy subsidies and promote energy efficiency at the same time. Presidential Decrees No. 11/2011 and No. 71/2011 provide a legal basis for the promotion of energy-efficient measures. Furthermore, national and regional administrative units are obliged to promote the efficient use of energy. In addition, since 2014 the Indonesian government has had the goal of reducing energy intensity by 1% annually. Since 2014, large companies have therefore been obliged to carry out regular energy audits and draw up energy management programs.

Since there are hardly any Indonesian manufacturers or suppliers of energy-efficient technology, software or services, there are good opportunities for foreign companies in this area. Due to the good reputation of "Made in Germany" and the long experience of German companies in energy efficiency there is a lot of potential for German companies in Indonesia.

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Delegation Partners: German Ministry of Economic Affairs and Energy (BMWi) & Eclareon

For more information, please visit EKONID website.