Special Allocation Fund-Efficiency Energy (DAK-EE) an Acceleration of Energy Efficiency in Indonesia

Abstract

Related to climate change and economic development of environmentally friendly (green economy) issues, the President has committed to reducing emissions of greenhouse gases (GHG) by 26% on their own sources (BAU), and up to 41% with international support in 2020 through Presidential Decree No. 61 in 2011 about the National Action Plan for Greenhouse Gas Emission Reduction (RAN-GRK). In addition to regulating the sectors that are considered to be the largest contributor to GHG emissions, the regulation also establishes funding sources RAN-GRK either through the APBN, APBD, as well as a variety of other sources constituted under the legislation. One of the initiatives that need to be supported is an effort to reduce their energy use. In this context, the Ministry of Finance has provided various forms of incentives to affect various economic actors in order to implement energy savings programs through the Special Allocation Fund (DAK) Energy Efficiency (EE) in the mechanism of Transfer to Regions. DAK-EE is expected to occur in energy efficiency projects aimed to (1) reduce electricity subsidies, (2) encourage the use of energy-efficient technologies, (3) stimulating the involvement of the financial sector (banking / financial institutions) to support the development of energy conservation and, (4) assist efforts to achieve national GHG emission reduction target by 2020. Using the descriptive method of analysis, the researcher wanted to analyze the possible use of DAK EE as a energy efficiency financing in Indonesia.

Keywords: Special Allocation Fund, Energy Conservation, Energy Efficiency

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