5.

POLICY MEASURES – INDUSTRY SECTOR

5.1. Critique
A. Energy Efficiency and Conservation in the Textile and Steel Sector Industries

The industry sector is the main energy consuming sector consuming about 44% energy
of all energy consumption in Indonesia. According to the Indonesian energy projection, energy
consumption of the industrial sector in 2050 will increase five times as much as that in 2010.
Therefore Energy Efficiency (EE) of the industry sector is the most important issue to reduce
energy usage.

Indonesia formulated the National Energy Conservation Master Plan which contains
targets, basic policies, programs and energy conservation measures. The Master Plan is made
for five years and could be reviewed annually as necessary. To implement specific EE policies,
it is essential to set not only comprehensive targets but also the targets for each sector/sub-
sector. It is highly commended that Indonesia set the specific EE industry sector and sub-sector
goals for 2025 in the EE master plan.

A Strategic EE Program for the industry sector was developed to achieve EE targets in
the National Energy Conservation Master Plan. This program contained regulation, energy
management system, EE best practice application, CO2 emission reduction and Clean
Development Mechanism scheme. The program also includes effective issues such as training
of energy management and recommendations by audit.

Indonesia is one of the major textile producing countries in the world and the textile
industry subsector has contributed greatly to the economy. However, the textile subsector faces
increasingly tough competition from the view point of energy consumption, productivity and
quality. The government understands this situation very well and wishes to maintain and
develop the potential continued existence of the textile subsector using funding assistance for
the improvement of technology and machinery upgrading. For example, 10% finance for
investment of an EE facility is offered by the government to textile companies who can
demonstrate investment in an EE facility in their plant (i.e. in terms of energy efficient
equipment).

The iron and steel industry subsector promotes the introduction of EE technologies such
as preheating, regenerative burners, hot charging and so on. Furthermore the iron and steel sub-
sector with encouragement from the Government developed the following EE programs: 1.
Energy consumption diagnosis to understand the level of energy consumption, machinery and
technology in the national steel industry, 2. Technical guidance formulation to supply specific
technical assistance for energy efficiency and CO2 emission reduction, 3. Energy audit to
understand the EE potential and actions in the steel industry. Also, it is highly appreciated that
the iron and steel subsector is implementing various EE actions to introduce more effective
facilities and best practice technology in conjunction with international organizations and
through bilateral cooperation such as with Japanese organizations like the National Energy and
Industrial Technology Development Organization and the Japan International Co operation
Agency and Indonesia-Canada cooperation.
5.2. Recommendations

Recommendation 1 Continue to build energy manager’s capacity to develop energy saving

plans, energy reporting, financial plans addressed to the company’s board of directors
regarding concepts such as retrofitting and process change to reduce energy consumption.
Recommendation 2 Continue the capacity building of energy auditors and consider creating
energy audit guidelines to improve the quality of the energy audit results.
Recommendation 3 Encourage large energy users to report energy data and follow the
progress (of Law No.70 2009). It is also important to spread EE regulation information among
company employees.
Recommendation 4 The government should provide information on the international best
practice technologies within all energy consuming sectors.
For example, PT South Pacific Viscose has a program to collect EE suggestions from
employees. This program is an excellent way to promote EE company by company and can be
stepped up by conducting competitions and award programs among employees to foster
creative ideas.

B. Government Policy Regulations and Energy Management in Industry

We believes that industry in Indonesia is so dynamic, as it hosts a several number of

energy intensive industries such as iron and steel, pulp and paper, chemical, cement,
petrochemical, textile, ceramic, food and beverages, among others. These industries shared the
biggest shares of the country’s energy consumption as shown in Table 9.

In our opinion, energy efficiency and conservation in Indonesia is still at an early stage.
Energy related conservation policies have been issued by the central government particularly
Presidential Decree No. 5 series of 2006 which directed the government to exert efforts to
ensure security of energy supply of the country, followed by the ratification of Energy Law
No. 30 series of 2007, particularly Article 25 on the conservation of Energy and which has also
been the legal basis for the creation of the National Energy Council, and finally the enactment
of Government Regulation No. 70 series of 2009 which institutionalizes Energy Conservation
across energy demand sectors.

Industry Programs and Target Energy Saving

The Review Team learned that the Ministry of Industry’s optimistic target potential
energy savings was set at between 10-30% in 2025, as shown in Table 2, in parallel with the
overall national energy policy goal of increasing the utilization of coal in power generation for
the same period. By and large, the enforcement of incentives and penalty clause provisions of
appropriate energy conservation laws are already in-place but enforcement is not prominent
due to insufficient information dissemination awareness campaign programs from the
government.

It is in the opinion of the Review Team that the development of a comprehensive

strategic national energy efficiency and conservation master plan by the MEMR is a good move
to determine appropriate programs vis-à-vis target energy savings forecast on a short-term,
medium-term to long-term basis for the industry sector and for other demand sectors as well.
Other concerned government agencies seem to not have proper coordination as each entity have
had its own plans and programs, data collection and monitoring system mechanism, among
others. The exchange of data and information to measure the magnitude of success for review
and improvements of existing policies are limited and as highlighted before much needed.

Loan Financing Windows for Efficiency Projects

The Review Team believes that there is big potential for energy conservation projects
across the industrial sector however the financial loan window for efficiency projects seems to
not be available. The absence of inadequate knowledge of commercial banks on this new
concept of business opportunities puts on hold government initiatives for successful program
implementation. A government intervention to promote and demonstrate loan packages for
energy efficiency projects through State Owned banks is worth considering as it can prove to
be a good example for other banks, including commercial banks. Other tools and mechanisms
to address financial loan requirements may be explored such as the promotion of the concept
of energy performance contract by the Energy Service Providers (ESP) or Energy Service
Company (ESCO).

Site Visit: PT. South Pacific Viscose

As mentioned earlier, the Review Team visited P.T. South Pacific Viscose (SPV) which
is located in Purwakarta, West Java, Indonesia. There was a short introduction about SPV after
which the tour of various production line facilities followed.

The company has been a producer of viscose staple fibers and sodium sulphate since
1982. The initial fiber production capacity rose from 120,000 to 150,000 tons per annum with
a corresponding sodium sulphate production capacity of 90,000 tons per annum. In April 2010,
it officially operated its fourth production line costing USD 150 million in investment, wherein
it increased total annual production capacity up to 220,000 tons of viscose fibers for textile and
nonwovens applications. A debottlenecking program started along with the regular operation
of line four and raised total production capacity by another 18,000 tons to 238,000 tons per
year whilst production capacity for sodium sulphate increasing to approximately 120,000
tonnes per annum. During the visit, it was reported that SPV shall again go for another round
of production line expansions with the construction of line 5 that shall increase fiber production
capacity by 80,000 tons per year, which increases SPV’s total production capacity to 325,000
tons per year by the end of 2012, when it is expected to be put on stream for operation.

The company operates 365 days a year and consists of several linear processing steps,
such as: steeping, shredding, xanthation, dissolving, filtering, ripening, degassing, spinning
(wet), stretching, cutting, washing and finishing wherein the rayon (filament yarns) materials
have been packed in bales to be protected from dampness and dirt by a polyolefine film and
these raw materials have been transferred to the yarn spinning mills for their final process
application for apparel making, home furnishing, industrial uses, and for hygiene products. In
the operation of its production process system, the company relies mainly on electricity from
the grid and from on its own-electricity generation (20.5 MW power plant) and process steam
to transform the viscose materials to the final rayon materials. In the production of steam, the
boiler is fed with solid waste materials and solid sludge produced during the production
processing. The gas recovered during the process is likewise used in the production process as
an input energy, thereby increasing energy self sufficiency by 40% as reported during the
meeting.

The Review Team learned that SPV is open for any outside intervention so long that it
will help the company manage its energy utilization efficiently and judiciously. Any ESCO is
welcome and can forge an agreement relating to the project performance contracting principle.
Also, the Team came to know about MEMR regulation to submit periodic energy consumption
reports however SPV does not have any knowledge of such government compliance
requirement or many other applicable policies on energy efficiency and conservation. The
review team however was notified that select staff members had recently attended a
government workshop. This raises the issue of the effectiveness of such workshops and that
thorough evaluation of such workshops be conducted even through simple methods such as the
provision of evaluation sheets at the end of the workshops.
5.3. Recommendations
Recommendation 5: The government should make large information, education and
communication campaigns across demand sectors, particularly those from the energy intensive
industrial establishments to be able to educate the sector on matters that require government
compliance for better energy management.
Recommendation 6: The government in cooperation with the private Energy Service Provider
(ESP) must promote energy audit services and their recommendations as the first key step for
energy conservation in the industrial sector.
Recommendation 7: Given that the industrial sector is a large energy consuming sector,
policies targeted at energy efficiency and long term energy supply security should be handled
and coordinated by a central agency such as the MEMR.
Recommendation 8: The Review Team suggests the emphasis of the relevance of the financial
sector in providing financing opportunities for EE projects; this includes State Owned or
private financial institutions.
Recommendation 9: In the short-term plan, the MEMR must consider the endorsement of
imported Energy Saving Capital Equipment or pioneering energy efficient technologies and
products for use by the Industry through the Ministry of Finance through tax incentives.
Recommendation 10: With the government lacking the necessary resources (financial and
manpower), the government must consider strengthening its ties under a “Voluntary Program”
with its stakeholders such as NGOs, Professional Associations, environmental advocacy
groups, Information agency

Recommendation 11 SPV is part of one of the most energy intensive industries in Indonesia
which necessitates assistance from the government through MEMR. The government should
extend the above mentioned recommendations to SPV as well and focus on assistance with
energy management within a company and on the evaluation of workshops held, participation
at workshops can be encouraged through a National Efficiency Award program that recognizes
and acknowledges companies efforts in reducing their energy consumption through improved
energy consumption performance supported by energy efficiency projects and actual energy
saved.

The government must prescribe to SPV and to other similar energy intensive industries
an ideal Energy Management System (EMS) where there will be the presence of key step
approaches for energy management standards as shown in Figure 21 below.

6. POLICY MEASURES – ELECTRICITY SECTOR

6.1. Critique

Power Development Plan

The state owned electric company – PLN is implementing a power development plan
of notable importance. The plan for 2011 to 2020 expects rapid substantial addition of new
electricity generating capacity totaling 50732 MW; construction of a transmission line, 45798
km in total length; and substation capacity addition of 117383 MVA.

The plan will all but eliminate oil use in electricity generation; introduce LNG receiving
terminals, which would facilitate the option of LNG imports, for supply to power plants in
major demand centers; the generation capacity addition will include 11625 MW of new and
renewable energy power plants, mostly geothermal and hydroelectric power plants;
furthermore, the plan will reduce power transmission and distribution losses. The generation
capacity addition expects to include a series of super-critical; and ultra-super critical coal steam
power plants, in the latter part of the plan.
 PLN is implementing a “Power Generation Road Map” for 2010 – 2020 to be carried
out in three phases for two categories: Technology Use, and Technology Development. The
road map identifies:
Technical energy efficiency improvements for power plants, by:
 Condition based maintenance
 Reengineering, upgrading, and up-rating
 Introduce high thermal efficiency power plant; including super critical, and ultra super
critical steam power plant

Thermal efficiency improvement and energy reduction is extended by:

 Improving fuel quality
 Increasing power plant typical economies of scale specifically, for gas turbine 240 MW;
coal steam power plant 800 MW; super-critical coal steam power plant 1000 MW
 Conversion of gas turbine to combined cycle power plant
 Use of specific technology such as: multiple start-stop heat recovery steam generator,
coal gasification

Power system operation:

 Peak shaving measures that will include pumped-storage hydropower plants in the near
future

Consumer programs:
 Energy saving program in industry and commercial buildings; pre paid meters;
response to time of use tariff

PLN is also implementing a “Transmission and Distribution Roadmap” for 2010 to 2020
to reduce transmission and distribution network losses.

Plant level measures

Generation Business Units (GBUs) of PLN subsidiaries are implementing a Efficiency
Drive Program (EDP). The EDP endeavors to maintain heat rate; optimize operation pattern;
optimize on maintenance; minimize own use; innovate in operation; improve in personal
capabilities. EDP initiatives have produced numerous meaningful technical energy efficiency
improvements, by specific plant level measures.

At plant level, thermal power plants need to comply with the Ministry of Environment’s
program called PROPER which evaluates environmental management performance in
industry, including power plants. The PROPER program classifies environmental management
performance into a category ranging from Black for the worst case, to Red, Blue, Green and
Gold for the highest level. PLN thermal power plants achieve the Blue category. The program
includes evaluation of use of natural resources, including energy.

Energy efficiency by internal capacity

The Review Team appreciates PLN’s power development plan and programs that
emphasize technical improvements and technological change in power generation and power
systems operation to gain higher energy efficiency levels and energy use reduction; and the
expected structural change in primary energy supply and generation mix. The overall program
would better position the company to energy challenges in the near future and increase its
competitiveness.

Considering current and future electricity production, the technologies to be introduced,

the vastness of PLN’s electricity supply coverage area, and requirement of personnel with
specialized proficiency to manage and operate the units of electricity supply; the Review Team
proposes PLN make continuing and enhanced internal capacity building efforts in operation
and maintenance of power plants and power systems with special emphasis on energy
efficiency and conservation.
Creation of proficient personnel should be central in promoting energy efficiency and
conservation in PLN’s planning and programs. As required by Law, PLN need to formally
appoint energy managers, which should come from internal operational circles, to lead the
program. The Review Team is confident that the energy manager and energy team would be
well-versed in their specialized field and can exceed expectations to carry-out energy audit as
mandated by the Law, and implement identified improvement measures. External engineering
expertise may nonetheless be required in specifying detailed technical specifications and plans
for large investments in energy efficiency.

When electricity is heavily subsidized, as is the case in Indonesia, the undertaking of

large energy efficiency investments would be challenging for the electricity utility. On the other
hand, when funding is freed by removal of subsidies it could be allocated, should the
government so choose, as a government loan to the electricity sector to invest in energy
efficiency and derive national benefit.

Energy efficiency targets in the corporate plan

Considering the special nature of the electricity sector and the Law, the Review Team
proposes that the government mandate PLN to formally establish energy efficiency
improvement targets in electricity generation and in other potential areas of energy saving;
besides the well established transmission and distribution loss reduction target, for
endorsement by the regulator of the electricity sector.

The combined energy efficiency and conservation target declaration should be stated in
PLN’s power development plan, the electricity supply master plan – RUPTL. The statement in
the RUPTL would be the corporate plan and management should be responsibile for its
accomplishment. The RUPTL is by regulatory process endorsed by the Minister of Energy and
Mineral Resources.

6.2. Recommendations

Recommendation 12: With regard to current achievements and challenges in the future, PLN
should maintain frequent training on energy efficiency and conservation; establish energy
manager qualifications – to power industry specifications for personnel in power generation,
in particular; and exchange of experience in implementing Efficiency Drive Program.
Recommendation 13: PLN should formally establish an energy manager and energy team in
its units to execute energy audits and establish energy efficiency and conservation targets and
programs for approval by management.
Recommendation 14: The Review Team considers that PLN should formally declare energy
reduction targets and thermal efficiency targets for power generation as part of the combined
energy efficiency and conservation target in electric supply, stated in the electricity supply
master plan – RUPTL.

7. POLICY MEASURES – COMMERCIAL AND RESIDENTIAL SECTOR

7.1. Critique

In 2010, the commercial and residential sector accounted for 15.9% of the total final
energy consumption 710 MBOE in Indonesia, with the share of each sub-sectors being:
commercial 31.3 MBOE (4.4%), and residential 81.7 MBOE (11.5%). The commercial and
residential sector’s final energy consumption was ranked third after the industrial sector (44%)
and the transport sector (36%). By 2015, the total final energy consumption is predicted to be
1016 million BOE, with the sector split as follows: commercial 30 million and residential 131.1
million. In terms of electricity, the electrification ratio in 2010 was 67.15%, 32.85% of
households do not yet have access to electricity, the targeted electrification ratio is expected to
reach 70.4% in 2011 and 80% by 2014.

According to the Government Regulation No. 70 series of 2009 regarding Energy

Conservation, national energy conservation is the responsibility of the government, regional
government, regency/city government, enterprises, and the community. The Ministry of
Energy and Mineral Resources (MEMR) is an institution that became the focal point for the
implementation of energy conservation in Indonesia, the Directorate of Energy Conservation
within the MEMR plays the role of implementation and coordination of the National Energy
Conservation Program. The Review Team finds that the responsibility of energy conservation
and energy efficiency is only clarified in principle, but not clear in implementation in specific
sectors. In the commercial and residential sectors, the main function of the Ministry of Public
Works in the national energy conservation program is described to realize real energy
conservation in facilities and infrastructure and integrate it with comfort, safety and
airworthiness; along with this it is responsible for setting standards for energy conservation in
buildings. The Ministry should play a more active role in energy conservation and energy
efficiency improvement in the commercial and residential sectors, as the role of the Ministry
of Public Works seems limited.

Commercial sub-sector
In Indonesia, the single climate zone is applied to all regions, there are several national
standards for energy efficiency in buildings, the details are as follows, SNI 03-6389-2000:
Energy Conservation in Building Envelope, clarified that overall thermal transfer value
(OTTV) should be less than or equal to 45 Watt/m2, which has been used to control building
energy contributed by the envelop design. SNI 03-6390-2000: Energy Conservation of Air
Condition System in Building set the minimum efficiency of unitary air system equipment or
package unit operated by electric. SNI 03-6197-2000: Energy Conservation of Lighting System
in Building suggested average lighting level, colour rendering and colour temperature by room
function and the maximum electric power for lighting by location. SNI 03-6196-2000: Energy
Audit Procedure in Building is also one of the standards in the sector. Jakarta city government
is also currently preparing a green building code. These standards are however separated from
each other, the building energy code which could consider all related factors in buildings
appears to be lacking. Under the Directorate General of New Renewable Energy and Energy
Conservation (DGNREEC) the guidelines of energy efficient building design are being
developed and will be accompanied by software which will assist professionals in designing
and constructing energy efficient buildings. The software can also generate a simulation and
performance evaluation of existing buildings.

Regarding the energy efficiency policies in buildings, the government has issued
various policies and regulations, such as: Law No. 28 year of 2002 regarding Building; Law
No. 30 year of 2007 regarding Energy; Government regulation No. 70 year of 2009 regarding
Energy Conservation; Standard of competency for energy managers in building sector, etc.
With the issuance of Law No. 30 year of 2007 regarding Energy, energy conservation programs
have a strong legal foundation. In accordance with the law, energy users with energy
consumption of 6000 tonnes of oil equivalent per year in buildings as well as industries should
conduct energy management programs and activities i.e.: appointing an energy manager,
preparing a energy conservation program, conducting energy audit and implementing its
recommendation, and reporting energy conservation planning and measures to the government.
The mandatory application of energy management for large energy users will be implemented
step by step.

The Indonesian government has engaged in several practices to promote energy use in
commercial buildings through education and training, green building movement promoting
energy efficiency etc. A capacity building program for energy management and energy auditors
has been developed and aims to train energy managers and auditors in the commercial sector
as well as industrial sector. Since 2006, the new building and existing building green rating
tools for green buildings has been introduced to Indonesia, of which the criteria is related to
appropriate site development, energy efficiency and conservation, water conservation, material
resource and cycle, indoor health and comfort, and building environment management. Energy
efficiency and conservation is the main factor in this rating system. Although the development
of green buildings so far is voluntary, highly efficient green building commercial showcases
have been built; one example of this is the office building of Ministry of Public Works. The
performance of green buildings demonstrate great energy conservation potential in the building
sector, saving 10% of energy consumption for new commercial buildings with good
performance (for example the energy efficiency index of office building in Jakarta in 2010 was
250 kWh/m2/year), and the potential to save 30% of energy consumption for existing
commercial buildings. According to the experience of green buildings in Indonesia, the
additional investment would be almost 11% of total investment in buildings. In Indonesia,
existing buildings accounted for 98% of total buildings, while new buildings possess a share
of 2%. Large-scale public buildings tend to be highly energy intensive but with the high
potential of energy savings. The review team finds both challenges and opportunity for EE and
green building adoption in Indonesia. The barriers mainly come from lack of confidence,
experience, public awareness, demand and financial support especially due to limited supply
of accredited professionals and lack of knowledge about the environment, social, and economic
risk of inefficient conventional building. Opportunity presents itself in the fact that most
buildings are still inefficient, increasing demand from the market throughout country,
government initiative in supporting regulation and standards, capacity building, institutional
strengthening and financial support.
The Review Team finds the Ministry of Energy and Mineral Resources also have achieved
great progress on energy data collection and monitoring, but data on energy consumption is
still limited, and as of now not completely available in the building sector. To support the
analysis and research, accurate and detailed data collection in buildings should be focused on.

The Residential sub-sector

 Although the share of final energy consumption in the Indonesian residential sector was
only 11.5% in 2010, the energy consumption will be increase as economic development and
income increase. According to estimates, the share of final energy consumption in the
residential sector in 2015 will be larger compared to the level in 2010 under the business as
usual scenario. In 2025, energy demand in the residential sector will be three times the 2010
level and continuing to increase. However it appears that the energy performance in residential
buildings is not regulated and not promoted through voluntary energy codes. Not considering
the energy-use performance of residential buildings will have a significant implication on their
energy use. Residential buildings with poor energy-use performances will remain for many
years due to the long life span of the buildings.

Behaviour of occupants is another important factor that impacts the energy performance
of buildings. In Indonesia, the concept of the “Energy Saving Competition for Households” is
currently under preparation and planning which aims to demonstrate how the residential sector
can reduce its energy consumption while still functioning optimally.

7.2. Recommendations
Recommendation 15 The responsibility or role for energy efficiency and energy conservation
(EE & C) in the commercial and residential sectors should be clearly defined. The Review
Team proposes that the Ministry of Public Works, as the Ministry responsible for EE&C in the
building sector (including the commercial and residential sectors), should participate in the
Review Team’s proposed structure within the government whose members are from relevant
ministries that implement national energy conservation programs to foster cooperation with
other relevant ministries, especially the MEMR, the ministry responsible for the success of
EE&C in Indonesia.
Recommendation 16 Develop energy building codes and building EE&C regulations for
commercial building, including regulatory compliance and enforcement processes.
Recommendation 17 Emphasize on energy management of large-scale public and government
buildings. Enhance the deployment of the monitoring and control system in energy intensive
buildings. Adopt cost-effective measures to promote the energy performance in existing
buildings.
Recommendation 18 Encourage the development of Green Buildings. Develop the rating and
labelling system. Enhance the demonstration of Green Buildings, especially in government
buildings. Meanwhile provide financial support and enhance the capacity building of related
players.
Recommendation 19 Enhance the foundation of EE&C in the building sector, including
energy data collection and analysis, an energy saving potential study, etc.
Recommendation 20 Develop building EE&C regulations or building energy codes for
residential buildings, based on life cycle cost effective energy efficient measures. Enhance the
implementation of these regulations.
Recommendation 21 Improve the EE&C awareness of public, encourage the behaviour of
energy saving through displays at shopping malls, schools and handing out of pamphlets at
public gatherings or places.
8. APPLIANCES AND EQUIPMENT
8.1. Critique

Certification
The Review Team appreciates mandatory labelling of compact florescent lamps – CFL
in 2011 and plans for energy labelling of other appliances and devices in the future. With regard
to Ministerial Regulation No.06/2011 regarding Applying Energy Saving Label for Self
Ballasted Lamp, the Review Team noted that the statement of compliance (Declaration of
Conformity) is issued by the manufacturer or importer. Under the usual standardization
practice, conformity is issued by an independent accredited certification agency/ institution,
when such agency is available.

The role of the certification agency includes verification that testing procedures
performed by the testing laboratory conform to the requirements of the standard’s test
procedure. Certification by an accredited agency is the basic principle towards mutual
recognition agreement (MRA) of product certification in free trade, which is being
endeavoured by APEC.

Labelling
There are two basic types of labelling systems:
a. Comparative labelling
b. Endorsement labelling

Comparative labelling uses the star rating system; the Stars inform the product rank in
the market, say, 1 Star denotes that the products’ energy efficiency is the worst in the market
indicating that there are other more efficient products in the market. Since it is a comparative
(ranking) system, the Star labelling system would be unrealistic for the case where all or most
products get the highest rank Stars.

An endorsement labelling does not have a Star rating, its purpose is to inform
consumers that the product meets or exceeds minimum energy efficiency standards. The
endorsement labelling system is the most straight forward means to inform on standard
compliance.

In the case of the energy labelling for CFL in Indonesia; while the labelling system uses
Star rating, it is not comparative labelling, the Stars denote absolute energy efficiency level;
higher Star rating denotes higher efficiency. The system importantly does not indicate whether
products of the lowest Star qualify minimum energy efficiency standards if any, or whether
low energy efficiency products, that do not qualify minimum standards, are in fact available or
permitted in the market.

Minimum energy performance standard

Indonesia notably has SNI energy performance testing standards (EPTS) for at least 9
electrical appliances and equipment. The Review Team understands that Indonesia is
considering implementing the minimum energy performance standard (MEPS).
Implementation of MEPS should consider harmonization with regional MEPS of APEC
economies and be established gradually. MEPS would establish high energy efficiency
standards in a dynamic process taking into consideration the most recent advances in energy
efficient technologies. The Government should establish MEPS as a norm that is applied
nationwide, compliance to standard should be regulated.

The concept of standardization is notably different to the concept established by Law,

where producers of energy devices and equipment will be given incentives for implementing
energy conservation and for their role in reducing energy consumption.

Standardization should at least be based on an accredited testing laboratory and

accredited certification agency at the national level, however laboratory and certification
agency should strive for international accreditation. Crucially, standardization should mean
prohibiting products that do not qualify minimum standards in this case energy efficiency
standards, from entering the market, enforced by the Ministry of Trade.

8.2. Recommendations
Recommendation 22 Certification of conformity for the purpose of standards and labelling by
an independent accredited certification agency/institution should be considered.
Recommendation 23 Endorsement labelling for certain products should be considered.
Recommendation 24 Plans to implement minimum energy performance standard (MEPS)
should be realized.

9. EDUCATION AND ENERGY EFFICIENCY RELATED RESEARCH AND

DEVELOPMENT
9.1. Critique

The Center is currently preparing education and training courses for energy managers
and energy auditors that will be structured based on the requirements and qualification as
elucidated in Ministerial Regulations regarding Competency Standard for Energy Managers in
the Industry Sector, and similarly, Competency Standard for Energy Managers in Building
Sector.

Training courses offer education on the following aspects:

 Training of Trainers in Utilizing Hydro Potential; Held in 7 Provinces; Participants:

140
 Training of Trainers in Management of Micro Hydropower Plants; Held in 7
Provinces; Participants: 140
 Training of Managers, Operators and Maintenance Personnel of Micro Hydropower
Plants; Held in 5 Provinces; Participants: 730
 Training of Managers, Operators and Maintenance Personnel of Solar Power Systems;
Held in 1 Province, Bali; Participants: 15
 Training of Managers, Operators and Maintenance Personnel of Wind Power Plants
Held in 3 Provinces; Participants: 30

Individual courses on offer by the Center in Jakarta for 2011 include:

 Applied econometrics in energy economics
  Introductory course on integrated energy planning and LEAP modelling
 Regional electric power planning and forecasting to increase use of NRE
 Economic analysis in utilizing NRE
 Regional energy planning
 Formulating electricity tariff
 Energy conservation in buildings
 Energy audit in buildings
 Energy manager
 Developing rural electrification
 Biomass power plant
 Biomass gasification for power generation
 Utilizing shallow geothermal energy for non power generation uses
 Feasibility study of micro hydro power plant
 Training of trainers on biogas
 Wind power plant
 Community development
 Management and monitoring near environmental impact of power plant
 Operation worthiness assessment of diesel power plants
 Operation worthiness assessment of micro hydro power plants
 Operation worthiness assessment of coal power plants

There are many more energy related courses that are offered by the Education and Training
Center of the MEMR. While attendees of the courses in past were mostly from government
and regional governments, participants from industry are now increasing. The Center is also
involved in international programs. It has held training courses of ASEAN, and training courses
under government bilateral programs with Denmark, the Netherlands, Italy, Japan, and Korea.

9.2. RECOMMENDATIONS

Recommendation 25 The research and development unit, under the Ministry of Energy
Efficiency and Conservation should collaborate extensively with local Indonesian Universities
and academics and even look at expanding such collaboration with the introduction of energy
efficiency/conservation related degree programs.

Recommendation 26 Collaboration between the research and development unit and industry
could see an expansion of research and development projects and lead to good energy
efficiency solutions. International collaboration could see the same results.

Recommendation 27 Seeking of sustainable government funds for research and development.

Recommendation 28 The development of a formal Energy Efficiency R&D plan within

National Research Council and monitoring system to clearly state objectives and goals of
projects and evaluate their success.

Recommendation 29 It is vital that there are more training centres across Indonesia so that
people living across the country are able to access training.
Recommendation 30 As the energy manager program evolves it may be necessary to consider
different levels of energy managers and the specific qualifications they will need.

Recommendation 48 It is vital that much consideration and careful planning of syllabuses for
training courses continue and that thought put into courses that build on previous courses.

Recommendation 49 It would be very helpful to have basic energy efficiency and energy
conservation educational courses at primary and high school level as well as at university level.

Recommendation 50 It is critical that there are well developed training programs and clear
accreditation avenues for energy auditors.