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Financing Green Buildings in Indonesian Cities
The report identifies financial barriers as the most severe challenge to green building implementation in Indonesia, citing a lack of dedicated financing instruments and high interest rates. While national regulations like GR 16/2021 have introduced green building standards, they are limited to very large buildings and exclude the residential sector, which accounts for 83% of building energy demand. A case study in Semarang demonstrates that combining building material retrofits with high-efficiency air conditioning can reduce cooling energy use by 32% to 44%, potentially saving USD 3.19 million annually. However, meeting green building mandates in Semarang over the next decade is estimated to require USD 223.7 million in investment.
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Document type: Report