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IFC Partners with IAI and GBC Indonesia to Promote Green Buildings, Improve Climate Resilience


In Jakarta
Zack Petersen
Phone: +62-21-2994-8011
E-mail: zpetersen@ifc.org

Jakarta, Indonesia, October 25, 2017 IFC, a member of the World Bank Group, along with the Indonesian Institute of Architects (IAI) and the Green Building Council Indonesia (GBC Indonesia) today hosted a signing ceremony where CEOs from Indonesia’s top 10 architecture firms solidified their commitment to implement green building measures in their designs.  

The event gave leading architects and market practitioners the opportunity to share their experience of adopting sound environmental practices to mitigate climate impact, reduce greenhouse-gas emissions and increase resiliency to climate change.

Indonesia is the fourth most populated country in the world and also the fourth largest greenhouse gas emitter, after the United States, China and India. As part of its plans to reduce emissions by 29 percent by 2030, the government is pushing for higher energy efficiency in buildings. The buildings sector is the country’s third-largest final energy consumer after the industrial and transportation sector. It accounts for 27 percent of the total final energy consumption and is expected to rise to 39 percent by 2030.

IFC and its local partner, GBC Indonesia, aim to turn 20 percent of the new construction projects (equivalent to 80,000 housing units) into green initiatives in select cities by 2021. This level of penetration will help cut 1.2 million metric tons of greenhouse-gas emissions per year, avoid 500 megawatt-hours of energy use, and save almost $200 million per year by 2021.

"Climate Change, environmental problems and population growth force us to create a better place to live,” said Naning Adiwoso, Chairwoman, GBC Indonesia. “Green buildings are no longer an option, they are a necessity. Good enough is dead. The way we work will never be the same. Are we driving change, or are we being driven by it?"

With IFC’s support, mandatory green building codes have been adopted by pioneering city and national governments over the past three years and demonstration effects have encouraged replication and the spread of good ideas. These regulatory and policy frameworks require a majority of new large-scale building projects to conserve resources such as energy, water, and building materials, during construction and operation. These requirements are expected to have significant economic, environmental, and social impact over time. The IFC Green Buildings team in Jakarta has helped lay over 18 million square meters of new floor area, and it has reduced over 700,000 tons in terms of carbon emissions.  

IFC is widely recognized as the premier global-development organization in the building resource-efficiency space due to its extensive global experience in green-building regulations and facilitating access to finance for green-building owners and developers. IFC’s EDGE (Excellence in Design for Greater Efficiencies) green building certification is helping builders worldwide to incorporate energy-efficient technologies into their buildings, thus helping to save resources and reduce greenhouse gas emissions. IFC has successfully provided advisory services and implementation support for mandatory green-building/energy-efficiency regulations in several countries in the region, including Indonesia, the Philippines, and Vietnam.  

“We know that sustainable cities are the future of Asia,” said Azam Khan, the IFC Country Manager for Indonesia, Malaysia and Timor-Lesté. “We have worked hard to win the trust of the government and shown the private sector that by using less we gain more. Investments here in Indonesia are going green and we are creating markets to drive investment and innovation in this sector.”

EDGE is an online platform, a green building standard and a certification system for more than 130 countries. The free application helps to determine the most cost-effective options for designing green within a local climate context. EDGE can be used for buildings of all vintages, including new construction, existing buildings and major retrofits. In the last two years, about 30 large projects in Indonesia have either been EDGE certified or are undergoing the process, demonstrating clear impact and early-market creation.

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end 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, not-for-profit organization established in 2009 by professionals in the 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 has four main programs — market transformation, training & education, green building certification, and stakeholder engagement. GBC Indonesia has an active role in the Asia Pacific Network as a member of World GBC.