IFC and Switzerland Support Semarang to Implement Green Buildings Codes, Conserve More Water and Energy

IFC, a member of the World Bank Group, and the government of Switzerland have been supporting Semarang in Central Java Province to improve the city’s energy efficiency through IFC’s Green Buildings Market Transformation Program. The aim is to encourage and support major cities like Semarang to develop and implement policies that will reduce the use of electricity, CO2 emissions, and water consumption.
 
Semarang joins Jakarta and Bandung as pioneer cities to implement the green buildings codes in the country. Subsequently, this will potentially help Semarang save 28 percent of energy consumption and 27 percent of water consumption. Indonesia is among the five largest greenhouse gas emitters, and the buildings sector is one of the country’s largest final energy consumers.
 
The Mayor of Semarang, Hendrar Prihadi, said, “As part of its commitment to reduce emissions by 29 percent by 2030, the Indonesian government is pushing for higher energy efficiency in buildings. To take it forward, it is necessary to modernize building construction with smart strategies to save energy and minimize impacts of climate change within a local climate context. Through this green building policy, Semarang is projected to reduce carbon emissions by 28 percent.”
 
“Indonesian cities are growing at 4.1 percent per year, the fastest in Asia. Seventy percent of Indonesians will live in cities by 2025, which may result in a multi-fold increase in electricity consumption by buildings,” said Azam Khan, IFC Country Manager for Indonesia, Malaysia, and Timor Leste.
 
He added, “Given the scenario, green buildings could be a more sustainable solution to keep up with the country’s growing infrastructure needs and its drive to increase resiliency to climate change. In this context, the green buildings codes will help ensure sustainable development and penetrate the green buildings market in Indonesia.”
 
Supported by Switzerland’s State Secretariat for Economic Affairs (SECO) and in cooperation with the Indonesian Architect Association (IAI) Central Java, Semarang’s adoption of the codes will validate Indonesia’s commitment to reduce greenhouse gas emissions through green buildings.
 
“Switzerland is proud to have partnered with IFC to support the Green Building Program in Indonesia. Green buildings are opportunities for sustainable development; they help reduce energy consumption, cut greenhouse gas emissions, conserve natural resources, improve air and water quality, and generate savings for building owners and residents. We trust that the positive experiences in Jakarta, Bandung, and Semarang will inspire other cities to follow suit and further boost the construction of green buildings across Indonesia,” said André Pantzer, Program Manager at the Private Sector Development Division, SECO.

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 where they are needed most. In fiscal year 2019, we delivered more than $19 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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SECO is Switzerland’s competence center for all core issues relating to economic policy. SECO’s economic development cooperation strives to achieve inclusive sustainable growth and poverty reduction. Its activities aim to create more and better jobs, to enhance trade and competitiveness, to support effective institutions and services and to foster climate resilient economies. For more information, visit www.seco-cooperation.admin.ch.