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Green building industry needs nudge from regulators
Funding is not the issue, but the green building industry could benefit from more supportive rules to increase market demand, experts say.
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The South Quarter multi-purpose complex in Lebak Bulus, South Jakarta, is one of dozens of constructions in the country certified by the Green Building Council Indonesia. (Courtesy of intiland.com/-)
T
he green building industry is expected to grow in Indonesia as banks and other capital market actors adopt environmental, social and governance (ESG) strategies, but regulations could be more coherent, experts say.
Climate Policy Initiative (CPI) associate director Tiza Mafira told The Jakarta Post on Monday that demand for green building was increasing, as reflected in a rising number of requests for the Greenship certificate issued by the Green Building Council Indonesia (GBCI).
Greenship-certified buildings have saved a total of 274 million kilowatt-hours (kWh) of energy as well as 2 million cubic meters of water and reduced carbon emissions by 244,187 tons annually, GBCI data show.
“The interest in getting Greenship certification is still limited to certain international and local companies,” Tiza admitted, adding however that demand for green buildings was expected to increase with the ongoing implementation of Government Regulation (PP) No. 16/2021 on buildings, which includes green building requirements for new construction projects.
The government issued two regulations affecting the industry this year, namely PP No. 16/2021 on buildings and Public Works and Housing Ministerial Regulation No. 21/2021 on green building appraisal, both of which aim to encourage the adoption of green building principles in infrastructure development.
Accounting for merely 2 percent of the total, buildings and commercial sectors so far have made only a tiny contribution to nationwide energy conservation against a business-as-usual consumption scenario, Energy and Mineral Resources Ministry data show.
