National Master Plan for Energy Conservation

Indonesia National Master Plan for Energy Conservation (RIKEN) sets a goal of decreasing energy intensity by 1% annually until 2025. In order to reach this goal, energy savings potentials have been identified as follows: industry 15-30%, commercial buildings 25%, households 10-30%. Once these potentials were established, a plan was formulated to achieve them; the plan includes fiscal incentives (tax deductions and soft loans) together with other instruments such as training and educational programs as well as energy audits.
As of late 2014, a draft version of the RIKEN is awaiting approval. In the current draft master plan, Indonesia aims to reach energy savings of 17% in the final consumption of the following sectors by 2025:
industrial sector, 17%
transport sector, 20%
commercial sector and households, 15%.
Furthermore, Indonesia is targeting a 1% energy savings in the transformation sector by 2025 with the following:
electricity production, 0.5%
transmission, distribution and refineries, 0.25%.
The energy savings target of 17% is based on a business-as-usual scenario with an average annual growth of energy demand of 7.1% per year. In addition, there is a target to decrease energy intensity by 1% each year and also to improve energy elasticity.

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