Jakarta, November 17, 2025 – Various sectors in Indonesia continue to move towards a low-emission future, and one area currently receiving significant attention is green buildings. Amid the escalating climate crisis, energy conservation efforts are becoming increasingly urgent, leading the concept of green buildings to emerge as a strategic solution to reduce emissions in the building sector. This transformation encompasses efficient architectural design, the utilization of renewable energy, and the use of more environmentally friendly materials.
Deon Arinaldo, Program Manager of the Energy Transformation System at the Institute for Essential Services Reform (IESR), explained that the energy transition and the use of renewable energy are now essential prerequisites for investment. Global trends indicate that by 2024, investment in renewable energy generation will surpass investment in fossil fuels, and growth will continue to accelerate significantly.
“At the international level, there is a shared commitment to double renewable energy capacity and strengthen energy efficiency efforts. This effort is often referred to as the double-down, triple-up approach. As demand for products produced with clean energy increases, the industrial sector is required to transform to remain competitive in the global market,” explained Deon in the Road to Indonesia Energy Transition Outlook (IETO) 2026 Webinar organized by IESR on Friday (November 14th).
Maharani Dyah Alfiana, Energy Efficiency and Conservation Analyst at IESR, explained that the transformation of the building sector is a key element in accelerating the energy transition in Indonesia. Through four parameters: electrification, minimum energy performance standards, energy management, and green buildings, the development of this sector can be monitored and encouraged to be more efficient, low-emission, and aligned with the national target of net-zero.
Alfiana explained that Indonesia has several green building certification schemes such as Green Building, Greenship, and Excellence in Design for Greater Efficiencies (EDGE). By 2024, the total area of certified buildings will reach 7.4 million m². Based on projections from the Ministry of Public Works and Public Housing (PUPR), this area is expected to increase to 16.5 million m² by 2030, but this figure is still far from the roadmap target of 110 million m².
However, Alfiana highlighted that the realization of emission reductions in this sector is not yet optimal. In 2024, it only reached around 0.35 MtCO₂e, and is projected to reach only around 0.79 MtCO₂e by 2030. This is despite the roadmap target of around 14 MtCO₂e. This means that current achievement is only around 6%.
“This gap arises from a lack of certified professionals, weak coordination and data integration between certification bodies, and the absence of a national data center to monitor the development of green buildings. Therefore, increased support from local governments, stronger local regulations, and the development of an integrated database between certification bodies are necessary,” Alfiana emphasized.
Hendra Iswahyudi, Director of Energy Conservation at the Directorate General of New, Renewable Energy and Energy Conservation, Ministry of Energy and Mineral Resources (ESDM), stated that to implement energy conservation, Indonesia already has Minimum Energy Performance Standards (SKEM) for eight types of energy-utilizing equipment, and by 2030, it is targeted to add five to six new devices. In the SKEM 2025–2029 roadmap, several appliances planned to be included in the standard are water pumps, irons, washing machines, induction stoves, blenders, and electric motors.
“The implementation of this standard has also begun to be seen in the air conditioning sector, where one-star air conditioners (AC) have been officially discontinued based on ESDM Ministerial Decree No. 134 K/EK 07/DJE/2023. This regulation is effective as of October 23, 2024, and raises the minimum Cooling Seasonal Performance Factor (CSPF) standard from 3.10 to 3.40, requiring ACs to be at least two-star rated,” Hendra said.
Ignesjz Kemalawarta, Chairperson of the Green Building Council Indonesia (GBCI), emphasized three main aspects of constructing green buildings. First, microclimate and site optimization, ensuring buildings are designed to suit microclimate conditions and minimize environmental impacts. Second, a green approach to construction, emphasizing a more environmentally friendly building process, from material selection to waste management. Third, energy management, optimal energy management and savings throughout a building’s operational life.
“These three aspects, if implemented properly, will enable the building sector to contribute significantly to achieving Indonesia’s Nationally Determined Contribution (NDC). Furthermore, considering the global trend, ideally, by 2060, all new buildings will be green, Indonesia is required to meet green building standards. To achieve this, Indonesia needs a clear roadmap for emissions in the building sector, including a target area of green buildings (in square meters) to be achieved,” said Ignesiz.
According to Ignesiz, with a roadmap and supporting policies, the government can create a climate that encourages investors and developers to build green buildings more extensively. This is crucial for accelerating the decarbonization of the building sector while ensuring a more sustainable national development direction.
The Indonesia Energy Transition Outlook (IETO) is one of IESR’s flagship reports, published since 2018, previously known as the Indonesia Clean Energy Outlook (ICEO). Now entering its 9th edition, IETO 2026 again assesses Indonesia’s energy transition readiness and provides projections for the coming year. This report was compiled by more than 20 IESR analysts. This year’s IETO theme is “Golden Indonesia, Green Indonesia: Examining the Synergy of Indonesia’s Energy Transition with National Economic Growth Ambitions.” IETO 2026 will be launched on Thursday, November 20, 2025, at 1:00 PM–5:00 PM WIB. Register at s.id/IETO2026.