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Linking of Barriers to Energy Efficiency Improvement in Indonesia’s Steel Industry

Author

Listed:
  • Apriani Soepardi

    (Department of Industrial Engineering, University of National Development “Veteran”, Yogyakarta 55584, Indonesia
    Department of Mechanical Engineering, Brawijaya University, Malang 65145, Indonesia)

  • Pratikto Pratikto

    (Department of Mechanical Engineering, Brawijaya University, Malang 65145, Indonesia)

  • Purnomo Budi Santoso

    (Department of Industrial Engineering, Brawijaya University, Malang 65145, Indonesia)

  • Ishardita Pambudi Tama

    (Department of Industrial Engineering, Brawijaya University, Malang 65145, Indonesia)

  • Patrik Thollander

    (Department of Management and Engineering, Division of Energy System, Linköping University, Linköping SE-581 83, Sweden)

Abstract

Energy use in Indonesia’s steel industry accounts for about 20–35% of total production costs. Consequently, energy end-use efficiency is a crucial measure that is used to reduce energy intensity and decrease production costs. This article aims to investigate the relationships among different barriers to energy efficiency improvement (EEI), using a framework with the following six constructs: government policy, the financial–economic factor, the managerial–organizational factor, the technological factor, workforce, and quality and type of feedstock and fuel used. The data were collected from steel firm practitioners in Indonesia, using a questionnaire to test our framework. The results demonstrate that the applied framework was applicable. We find that EEI is moderately influenced by all constructs but that the managerial–organizational factor has the greatest direct effect on improvements and is the most significant factor.

Suggested Citation

  • Apriani Soepardi & Pratikto Pratikto & Purnomo Budi Santoso & Ishardita Pambudi Tama & Patrik Thollander, 2018. "Linking of Barriers to Energy Efficiency Improvement in Indonesia’s Steel Industry," Energies, MDPI, vol. 11(1), pages 1-22, January.
    • Handle: RePEc:gam:jeners:v:11:y:2018:i:1:p:234-:d:127652
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    2. Nadiia Pysar & Dergachova Viktoria & Olena Vynogradova & Olga Guseva, 2020. "Gross Domestic Product Energy Intensity Level as a Criterion for Evaluating the Energy Security of National Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 424-429.
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    6. Pengfei Zhou & Mengyu Han & Yang Shen, 2023. "Impact of Intelligent Manufacturing on Total-Factor Energy Efficiency: Mechanism and Improvement Path," Sustainability, MDPI, vol. 15(5), pages 1-22, February.
    7. Apriani Soepardi & Patrik Thollander, 2018. "Analysis of Relationships among Organizational Barriers to Energy Efficiency Improvement: A Case Study in Indonesia’s Steel Industry," Sustainability, MDPI, vol. 10(1), pages 1-13, January.
    8. Joakim Haraldsson & Maria T. Johansson, 2019. "Barriers to and Drivers for Improved Energy Efficiency in the Swedish Aluminium Industry and Aluminium Casting Foundries," Sustainability, MDPI, vol. 11(7), pages 1-27, April.

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