Energy efficiency has emerged as a central pillar of Indonesia’s energy transition, delivering rapid and cost-effective emissions reductions while enhancing economic resilience. Recognized globally as the “first fuel,” energy efficiency offers benefits that extend far beyond the energy sector—lower energy costs for households and businesses, reduced reliance on imported fuels, strengthened competitiveness, and improved productivity. Indonesia has made steady progress, with energy intensity improving by an average of 3% annually over the past decade, underscoring the country’s growing commitment to more efficient and sustainable energy use.

Following the release of the Comprehensive Investment and Policy Plan (CIPP) in 2023, the JETP Energy Efficiency and Electrification Working Group (E3WG) was established to explore priority approaches in these areas. This study, prepared as part of the JETP Progress Report, examines the technical, policy, and financial dimensions of Investment Focus Area #1: Energy Efficiency and Electrification. Through benchmarking and critical analysis across supply- and demand-side sectors, it identifies gaps in current practices and proposes targeted improvements. The findings provide a data-driven foundation for developing practical policy reforms that can accelerate Indonesia’s energy efficiency and electrification agenda.

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