Implementation of Energy Management and Systems Optimization Projects
Policy measure

According to GEF (2011), the project entitled ‘Promoting Industrial Energy Efficiency through System Optimization and Energy Management Standards’ is to be implemented in Indonesia by the United Nations Industrial Development Organization (UNIDO) with support from the Indonesian Ministry of Energy and Mineral Resources (MEMR), the Ministry of Industry (MOI) and Badan Standardisasi Nasional (BSN). The objective of the project is to “promote industrial energy efficiency through system optimization approach and introduction of ISO energy management standards” (GEF, 2011).

Component 4 of the project, Implementation of Energy Management and Systems Optimization Projects, aims to increase the adoption of energy management standards and systems optimization energy efficiency projects by industries for higher energy savings on a continuous basis. Sub-component 4.1 specifically aims to provide technical assistance to industries for the purpose of implementing ISO compliant energy management systems in their facilities. (GEF, 2011) 

Total project cost is estimated at USD 16.355.380 of which the Global Environmental Facility finances USD 2.180.380 or 13 percent. Component 4 amounts to USD 12.725.000 (GEF, 2011). 


The following planned activities are to take place within Sub-component 4.1(GEF, 2011):

  • “Support of the implementation of operational improvement projects by national experts, with limited support from UNIDO’s international team, in 150 factories selected among the participating industrial facilities.

  • Direct support to 25 industrial factories to enable them to conform to the ISO 50001 standard. The support consists of extensive on-site assistance from the national energy management experts guided by the UNIDO international experts.

  • It is expected that 150 factories will complete operational improvement projects and participating factories register for the peer-to-peer network.”


The following assumptions concerning the project environment have been made if the objectives of Sub-component 4.1 are to be achieved (GEF, 2011):

  • Continuous support from the National Standardization Agency and the government.

  • Sufficient interest from industry.

  • Successful introduction of peer-to-peer network.


The following outcomes of Sub-component 4.1 are targeted by GEF (2011):

  • 150 factories adopted energy management plans and completed operational improvement projects.
  • 25 factories adopted and implemented ISO 50001.
  • Participating factories registered with the peer-to-peer network report energy savings.

According to GEF (2011), the expected outcome of the overall project is a “reduction in electricity and fuel consumption due to adoption of system optimization and energy management standards by industrial enterprises. The direct electricity and fuel saved from the successful implementation of the project will lead to a reduction of carbon dioxide emission (CO2) which is estimated at 67,442 tones of CO2 over the project lifetime. The indirect savings after project completion, resulting due to capacity development and introduction of ISO50001 is estimated at 522,960 tones of CO2.”


GEF (Global Environmental Facility), 2011. Indonesia: CF: Promoting Energy Efficiency in the Industries through System Optimization and Energy Management Standards. Available at: