Press Release

Energy Efficiency to Improve National Industry Competitiveness (Muhammad Ery Wijaya Researcher Cliamate Policy Iniative)

Kebijakan Publik
11-01-2021 , Posted - Administrator

The economic growth which has constantly increased from year to year needs to be supported by the availability of adequate supplies of energy as high economic growth will also result in high national energy consumption. From 2017 to 2019, the average increase of annual energy consumption every year reaches approximately 11% (ESDM, 2020). However, Indonesian energy tends to be consumed improvidently as shown by the 2010 - 2019 Indonesian energy intensity indicator which lies somewhere between 1.7 and 2 (ESDM, 2020). The high energy intensity demonstrates the tendency that Indonesian energy is not used optimally for economic activities which can increase the Gross Domestic Product (GDP) growth.

The industrial sector is one of the largest energy consumers as it spent 36.64% of energy in 2019 (MEMR, 2020). In recent years, the industrial sector, especially manufacturing, has continued to accelerate, because this sector proves to give large contributions to the national economy. In 2019, the contribution of the manufacturing sector to Gross Domestic Product (GDP) reached 17.58% (BPS, 2020). Unfortunately, the contribution of the manufacturing sector to GDP has shown a declining trend compared to the achievements in previous years due to several reasons, including the poor competitiveness of our industrial sector.