BUSINESS READINESS AND RETROFITTING ACCEPTANCE TOWARDS ENERGY EFFICIENCY TECHNOLOGY IN INDONESIA’S BUILDING SECTOR

Abstract

— Energy consumption in Indonesia is expected to increase over the next 10 years. According to
PT. Perusahaan Listrik Negara Tbk., since the 1990s, Indonesia’s energy consumption has increased (on
average) by 8.5% annually. Meeting Indonesia’s relatively high growth has always been a national
challenge. Today, however, Indonesia is the country that consumes the largest amount of energy in
Southeast Asia. The manufacturing industry makes up the largest portion of Indonesia’s total energy
demand, followed by the residential sector. However, much of the energy is not being consumed effectively
due to outdated technologies, poorly designed systems, etc.To improve Indonesia’s energy consumption
efficiency, projects to replace old technologies, raise awareness, introduce new policies, etc., should be
implemented, i.e. Building Energy Efficiency (BEE) projects. However, the implementation of BEE projects
in Indonesia is proceeding slower than desired. Lack of economic incentives, financing options, and unconsolidated policies among legislation were proposed as the key challenges to address. Retrofitting a
possible solution to help streamline the implementation of BEE projects. This study uses a descriptive and
verificative research approach with the aim to identify the key factors that influence the owner of a building
in deciding whether to adopt a BEE project.