SETI Shows Energy Efficiency Can Cut Industrial Costs by Billions of Rupiah

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Ecobiz.asia – Energy-efficiency and clean-energy projects implemented under the Sustainable Energy Transition in Indonesia (SETI) program have delivered significant cost-saving and emissions-reduction opportunities for Indonesian manufacturers, including potential annual savings of Rp11.8 billion at three footwear plants.

Atanasius Brantyopati Wibisono, SETI Senior Lead at WRI Indonesia, presented the results during Indonesia Sustainable Energy Week (ISEW) 2026 in Jakarta on Wednesday (August 20, 2026).

The three footwear manufacturers implemented measures including variable-frequency drives for compressor motors, improved sequencing and pressure-control systems, zero-liquid-discharge systems and LED lighting. Together, the projects are estimated to reduce electricity consumption by more than 12.3 GWh per year and avoid around 9,550 tonnes of CO2 emissions annually.

SETI has also supported other manufacturers in deploying energy-efficiency and renewable-energy technologies.

A pulp and paper company, for example, improved the operation of its coal-fired boiler through oxygen-trim controls and blower optimisation. The measures are estimated to save 8,463 GJ of energy and around Rp1.2 billion in annual costs, while reducing emissions by approximately 1,107 tonnes of CO2 per year.

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In the textile and apparel sector, a participating company installed a 123 kWp solar PV system that is expected to generate around 184,500 kWh of electricity annually. The installation could save approximately Rp191 million per year and reduce emissions by about 160.5 tonnes of CO2.

A food and beverage manufacturer installed two 103 kW heat pumps to reduce steam demand from a natural gas boiler used for hot-water production. The project is estimated to save 1.36 GWh of energy and around Rp1.4 billion annually, while cutting emissions by approximately 145.5 tonnes of CO2.

Beyond individual projects, SETI is also testing new models to help industrial estates and their tenants access renewable electricity at a larger scale.

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WRI is studying an aggregated solar procurement model under which industrial estates could combine electricity demand from multiple tenants and negotiate solar projects collectively.

Two structures are being assessed: sleeved leasing and an aggregated request for proposal (RFP).

Under the sleeved leasing model, an industrial estate would enter into a single arrangement with a solar developer and act as the contractual intermediary for participating tenants. The structure could provide additional leasing revenue for the estate while potentially reducing solar leasing costs through a larger procurement package.

The model would, however, require the industrial estate to assume contractual responsibility for the solar PV lease, creating additional financial and commercial exposure.

Under the aggregated RFP model, the estate would coordinate procurement and negotiate common terms, while individual tenants would retain their own commercial relationships with the solar developer. The estate could potentially receive a brokerage fee without taking direct leasing liability.

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WRI said the model would require competitive procurement and detailed information on tenants’ electricity consumption, including load profiles and demand commitments, to allow developers to properly structure and price projects.

The SETI program is a bilateral Indonesia-Germany initiative running until July 31, 2028. It combines policy support, financing, technical assistance, capacity building and demonstration projects across nine strategic subsectors.

Six companies have implemented low-carbon technologies under SETI’s first batch, while 124 participants from 39 manufacturing companies have joined capacity-building programs covering energy-transition strategies, technology selection, investment models, project bankability, and measurement and verification.

One example of larger-scale renewable-energy demand is the 100 MWp ground-mounted solar project at Kota Bukit Indah Industrial Estate. The project is expected to generate around 150 GWh of clean electricity annually and avoid approximately 118,725 tonnes of CO2 emissions per year. ***

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