Jakarta, 8 October 2026 — PT Investasi Hijau Selaras (HIJAU), BASE Foundation, and the ASEAN Centre for Energy (ACE) have signed a Memorandum of Understanding (MoU) under the Energy Savings Insurance (ESI) Indonesia Pilot Partnership. This partnership marks a step towards supporting the development of energy efficiency projects and promoting more measurable investment opportunities for businesses in Indonesia.
The MoU signing ceremony took place at HIJAU’s office in Jakarta in a hybrid format, bringing together representatives from all three organisations both in person and virtually. This collaboration forms part of the ESI Indonesia programme under UK PACT Phase II, which aims to address barriers to energy efficiency investment through mechanisms designed to manage technology performance risks.
Promoting Energy Efficiency Investment Through ESI Indonesia
Energy Savings Insurance (ESI) Indonesia is an initiative implemented by BASE Foundation, or the Basel Agency for Sustainable Energy, with the ASEAN Centre for Energy (ACE) serving as its local and regional coordination partner. The programme is supported through the UK Partnering for Accelerated Climate Transitions (UK PACT) Phase II.
One of the key challenges in developing energy efficiency projects is the uncertainty surrounding whether technology providers can deliver the energy savings they promise. For businesses, this uncertainty can influence investment decisions, even though more efficient technologies have the potential to reduce energy consumption and operating costs.
Through the ESI Indonesia framework, this challenge is addressed through an approach that combines three key instruments: a contractual energy savings guarantee provided by the technology supplier, insurance coverage supporting that guarantee, and independent measurement and verification to validate the resulting energy savings.
These instruments are designed to provide a more structured framework for managing technology performance risks. By incorporating guarantees and independent verification processes, businesses are expected to have a stronger basis for evaluating project outcomes and considering energy efficiency investments.
The Roles of HIJAU, BASE Foundation, and ACE in the Partnership
Through the signing of this MoU, HIJAU, BASE Foundation, and ACE will collaborate according to their respective roles to support the development of pilot projects under the ESI Indonesia framework.
BASE Foundation plays a role in developing and implementing the ESI framework, including instruments that support the management of investment risks associated with energy efficiency projects. Under this partnership, BASE also commits to providing support of up to GBP 1,500 towards independent verification costs, subject to the programme's terms and conditions.
The ASEAN Centre for Energy (ACE) serves as the local and regional coordination partner. Through this coordination role, ACE helps connect relevant stakeholders and supports partnership development in the context of Indonesia's energy market needs.
Meanwhile, HIJAU serves as a prospective client and pilot project partner under the ESI Indonesia framework. As a company operating in the energy solutions and energy efficiency services sector, HIJAU has the opportunity to explore the application of ESI instruments in projects that require technology performance guarantees and energy savings verification.
This collaboration represents an initial step towards connecting the risk management framework developed through ESI with the needs of energy efficiency projects in Indonesia's business sector.
Creating Opportunities for Energy Efficiency Project Development
Through the ESI Indonesia Pilot Partnership, the three organisations aim to support the development of energy efficiency projects through a more measurable and structured approach. Integrating energy savings guarantees, insurance support, and independent verification can help strengthen confidence in project outcomes and inform investment decisions by businesses.
For companies seeking to improve operational efficiency, this approach provides a framework for evaluating technology performance and the energy savings achieved. Independent measurement and verification can also help ensure that project outcomes are assessed using appropriate data and methodologies.
Beyond the development of pilot projects, the partnership opens opportunities to explore further collaboration in developing Cooling as a Service (CaaS) business models, exploring innovative financing schemes for energy efficiency, and potential joint participation in the SET Alliance network.
These opportunities form part of a broader collaborative agenda to support the development of energy service models suited to the characteristics of the Indonesian market.
Advancing a More Measurable Future for Energy Efficiency
The signing of the ESI Indonesia Pilot Partnership MoU marks an important step in strengthening collaboration between HIJAU, BASE Foundation, and the ASEAN Centre for Energy to support energy efficiency investment in Indonesia.
Through this partnership, project development will focus not only on technology deployment but also on how performance and energy savings can be managed and verified through a more structured process. This approach is expected to help reduce investment uncertainty and create opportunities for more businesses to explore energy efficiency solutions.
For HIJAU, participation in the ESI Indonesia Pilot Partnership represents an opportunity to develop energy solutions aligned with business operational needs while supporting efforts to improve energy efficiency. Looking ahead, collaboration with BASE Foundation and ACE is expected to provide a foundation for pilot project development and further cooperation that supports a more efficient and sustainable energy system in Indonesia.