Implementation of Energy Management and Systems Optimization Projects
Policy measure

According to GEF (2011), the project titled ‘Promoting Industrial Energy Efficiency through System Optimization and Energy Management Standards’ in Indonesia is to be implemented 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 4.3 specifically aims to develop and implement a recognition programme for facilities that will implement an energy management plan and report their energy savings. (GEF, 2011) 

Total project cost is estimated at USD 16.355.380 of which USD 12.725.000 is reserved for Component 4 (GEF, 2011). 


Achievement of the objective of the Sub-component activities will “include the management of a peer-to-peer database and a website. Participating industries will provide their energy savings which will then be made available through the peer-to-peer network website. Every year, awards will be given to industries based on their annual savings performance. The recognition program will be implemented in close collaboration with the MEMR.” (GEF, 2011)


To achieve the objectives of Sub-component 4.3, it is necessary to work under the assumption that “continuous government support for a recognition program” is present in the implementing environment (GEF, 2011).


The GEF (2011) targets a “formal recognition of factories achieving power/fuel consumption reductions reflected in government reports” as the main outcome of Sub-component 4.3.

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: