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Study By IFC and Green Building Council Indonesia Shows Nine Green Buildings Yield 30 to 80 percent Lower Utility Costs Compared to Standard Buildings

Jakarta, Indonesia, February 20, 2019 —IFC, a member of the World Bank Group, and the Green Building Council Indonesia, today announced results that emerged from a joint study on the benefits of green buildings. The study revealed that the nine green certified buildings, located in Jakarta and around, yielded 30 to 80 percent lower annual utility costs compared to standard buildings.
The buildings sector is Indonesia’s third-largest final energy consumer. It accounts for 30 percent of the country’s total energy consumption and is expected to rise to 40 percent by 2030. In order to reduce emissions by 29 percent by 2030, the government is pushing for higher energy efficiency in buildings.
Currently, more than 100 buildings in Indonesia have received voluntary green building certifications, and more than 3,000 buildings have complied with mandatory green building codes, covering an area of more than 20 million square meters.
As to the study, though the nine green buildings were 0-17 percent costlier than standard buildings due to incremental design costs and building materials, the outcome shows they are profitable in the long run.
“The electricity and water savings from the nine green buildings in the past one to two years of operation are very encouraging. The results—achieved through IFC’s Green Building Market Transformation Program—validate that Indonesia is on track in terms of its commitment to reduce greenhouse gas emissions through green buildings. Further, they provide environmental and financial benefits to developers, tenants, and other key stakeholders,” said Marcene Mitchell, Global Head, Strategy and Business Development for the IFC Climate Business Department.
Iwan Prijanto, GBC Indonesia’s Chairperson, said, “Promoting green buildings needs evidence, not just conceptual theory. We are glad to share these excellent examples that show significant savings for operators and investors, while providing a healthier indoor and outdoor environment for occupants.”
Since 2012, the Jakarta Provincial Government has enacted the green building code, which governs building designs for the city, contributing to lower electricity and water consumption, and optimizing the use of building materials. IFC partnered with the Jakarta Provincial Government to establish the code, with the government of Switzerland’s support through its State Secretariat for Economic Affairs (SECO).
“As a responsible investor, IFC invests in climate mitigation and adaptation. Our projects also fulfill fiscal responsibilities and are financially viable and profitable. IFC’s studies show green buildings offer a cost-effective way to reduce GHGs. We believe that the financial and environmental benefits that IFC, GBCI, and the developers have achieved can also be accomplished by others,” Marcene added.
Globally, IFC has invested more than $4 billion in green buildings through financial intermediaries, as well as in retail spaces, hotels, hospitals, mixed use property, and homes, in addition to schools and universities. An estimated 15 percent of the investments have been in the East Asia and Pacific region, including Indonesia.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
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About GBC Indonesia
Green Building Council Indonesia (GBC Indonesia) is an independent organization established in 2009 by professionals in design and construction industry who are concerned about green building practices. The main focus of GBC Indonesia is to pursue the socialization and transformation of sustainable green principles, particularly in building construction industry in Indonesia.
In organizing its activities, GBC Indonesia collaborates with all building stakeholders, including professional, government, and private sectors. GBC Indonesia have four main programs, they are: market transformation, training & education, green building certification, and stakeholder engagement.
GBC Indonesia is an Established Member of World Green Building Council (WorldGBC), headquartered in Toronto, Canada.