Energy consumption of buildings in Indonesia accounted for 3.8% of direct CO₂ emissions and 20.7% of indirect CO₂ emissions in 2019. However, total final energy consumption of residential building sector peaked in 2007 and since then has declined by 43% by 2019. During the same period, residential electricity demand has increased by around 120%. In 2019, the residential and commercial building sector in Indonesia consumed 20% of total primary energy and around 39% of electricity consumption.
1.5°C compatible pathways show that the share of electricity in buildings’ energy mix could reach 54-76% in 2030, and 92-95% by 2050, under different scenarios. All scenarios see a rapid decline in emission intensity of the building sector to 17-22 MtCO₂/yr by 2030 and 5-7 MtCO₂/yr by 2050, from a 2019 level of 25 MtCO₂/yr. The decline is mostly driven by an increased electrification rate with high share of renewables in power mix and increased energy efficiency.
Traditionally, the use of solid biomass (palm oil residue) remains significant as a cooking fuel, representing an energy demand of around 38% in 2019 for building sector. All analysed scenarios demonstrate a rapid decline in the demand for solid biomass, reaching 2-25% by 2050, however the share of oil in primary energy demand which was 25% in 2019, peaked /should have peaked in 2020 and start to decline after that under all analysed scenarios except one.
Indonesia is implementing green building standards for both commercial and residential buildings in three major cities, as well as mandatory Energy Performance Certificates for new commercial buildings. Considering the growing urban space of Indonesia, extending these policies for both residential buildings will be an important intervention in reducing emissions from the building sector. Some policies needed to be introduced for the retrofitting of the old buildings also.