An energy audit conducted by the Sustainable Energy Transition in Indonesia (SETI) Consortium, in collaboration with the Ministry of Energy and Mineral Resources (ESDM), has unveiled potential energy savings of 28.7 million kWh per year for Indonesian industries, equivalent to the electricity consumption of over 25,000 households. 

The implementation of the audit’s recommendations could also result in a reduction of operational costs by up to Rp10.3 billion (US$620,804) annually and a decrease in carbon emissions by approximately 13,300 tons of CO₂ per year.

The audit was conducted across five business entities in priority sectors for carbon emission reductions, including pulp and paper, textiles, and footwear industries.

According to Hendra Iswahyudi, Director of Energy Conservation at ESDM’s Directorate General of EBTKE, many of the efficiency measures identified in the audit have a payback period of less than three years, making them a viable opportunity for industrial sectors.

The energy audit, which examined critical systems in production processes, such as boilers, air compressors, steam distribution, electricity systems, cooling, motors or pumps, ventilation, and lighting, is part of a broader collaboration between the Indonesian Government, the German Government, and various energy conservation service providers (ESCOs). These audits provide industries with actionable steps to improve energy efficiency, reduce production costs, and enhance competitiveness while supporting national climate targets.

The projected energy efficiency measures could contribute up to 37 percent of the energy sector's emissions reduction target by 2030. As per Government Regulation No. 33/2023, companies are now required to conduct regular energy audits and implement the recommendations.

Johannes Anhorn, Lead for Industry Decarbonization at GIZ Energy Programme Indonesia/ASEAN, emphasized that the energy audit is just the first step in identifying energy efficiency opportunities. He noted that energy costs account for 20-30 percent of total production costs in industries, and the fastest way to lower both costs and emissions is by implementing energy-saving strategies.

"This activity is not the end, but part of the long journey toward decarbonizing the industrial sector. Future initiatives, such as a low-carbon technology catalog, will provide practical references for industries to select the right solutions," Johannes said as quoted in a statement on Friday, September 19, 2025.

The audit was conducted between June 6 and August 1, 2025, and included recommendations such as improving cooling system performance using modern cooling tower and chiller technologies, as well as installing variable speed drives (VSD) on motors and pumps to reduce energy consumption while maintaining operational reliability.

A comprehensive strategy is needed to turn these recommendations to turn into real action. This includes cost-effective, short payback measures; collaboration with ESCOs through performance contracts, technology support from innovative solution providers; and leveraging policies and incentives such as Government Regulation No. 33/2023, access to green financing, and capacity-building for internal technical teams to ensure sustainability.

Hendra emphasized, "Through cross-sector collaboration between the government, industry, technology providers, and ESCOs, the results of this audit are expected to translate into tangible actions toward energy-efficient, competitive, and low-carbon industries."