Response to COVID-19: Energy Conservation and Efficiency Survey
Summary
The COVID-19 pandemic negatively impacted Indonesia's energy efficiency sector, leading to postponed projects and reduced revenue for facility managers. While business managers and facility managers remain optimistic about long-term recovery, they maintain conservative revenue projections for 2021-2022 due to economic uncertainty. The report highlights a critical need for government intervention, specifically through bank loan interest reductions, tax deductions, and the use of National Economic Recovery (PEN) funds to stimulate demand for energy efficiency projects in both public and private sectors.
Key insights
- The pandemic caused a general decline in the energy efficiency business ecosystem in Indonesia, as reduced income for facility managers led to delays in energy efficiency efforts and fewer opportunities for Energy Service Companies (ESCOs).
- Facility managers reported that sales turnover was the most severely affected area of their business, with drops exceeding 50%.
- Energy consumption decreased significantly across various sectors; office buildings saw drops of 10% to 30% due to work-from-home policies, while the hospitality sector experienced drastic decreases of 20% to 50% because of hotel closures.
- Project implementation for energy efficiency was primarily hindered by disrupted physical work and uncertainty regarding pandemic crisis governance.
- Despite the crisis, there is a perceived growth opportunity for new energy efficiency businesses in the 'new norms' era, with a belief that state-owned commercial buildings and facilities will be the primary drivers of these projects.
- Facility managers identify bank loan interest reduction and income tax deductions as the most critical forms of government support required to sustain energy efficiency efforts.
- Business managers emphasize the need for the government to implement attractive incentives or reasonable disincentives for energy users and to create a roadmap for national energy efficiency and conservation targets.
Cite the original document
- APA
- Wijaya, M. E., Zeki, M., & Haesras, A. R. (2021). Response to COVID-19: Energy Conservation and Efficiency Survey. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/03/Response-to-COVID-19_Energy-Conservation-and-Efficiency-Survey.pdf
- Chicago
- Wijaya, Muhammad Ery, Muhammad Zeki, and Alke Rabinsa Haesras. Response to COVID-19: Energy Conservation and Efficiency Survey. Climate Policy Initiative, 2021. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/03/Response-to-COVID-19_Energy-Conservation-and-Efficiency-Survey.pdf.
- Wikipedia
- {{cite report |last1=Wijaya |first1=Muhammad Ery |last2=Zeki |first2=Muhammad |last3=Haesras |first3=Alke Rabinsa |title=Response to COVID-19: Energy Conservation and Efficiency Survey |publisher=Climate Policy Initiative |date=March 2021 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2021/03/Response-to-COVID-19_Energy-Conservation-and-Efficiency-Survey.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{wijaya2021response, author = {Wijaya, Muhammad Ery and Zeki, Muhammad and Haesras, Alke Rabinsa}, title = {{Response to COVID-19: Energy Conservation and Efficiency Survey}}, institution = {Climate Policy Initiative}, year = {2021}, month = mar, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2021/03/Response-to-COVID-19_Energy-Conservation-and-Efficiency-Survey.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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