BGH Certification in Indonesia: Pros, Cons, and What Developers Need to Know
Overview of Bangunan Gedung Hijau (BGH) in Indonesia
Indonesia has been striving to achieve sustainable development as part of its vision for Indonesia Emas 2045 and National Long Term Development Plan (RPJPN) 2025-2045.
A key pillar of this national vision is Indonesia's commitment to reducing greenhouse gas (GHG) emissions as an effort, in line with the Paris Agreement, to reduce the negative impact of climate change. Indonesia has an emission reduction target of 31.89% (unconditional: by independent efforts) and 43.2% (conditional: with international assistance) by 2030.
The building sector plays a crucial role in achieving this. The Indonesian government has issued the implementation of the green building concept known as Bangunan Gedung Hijau (BGH) across national development.
Why does the government target the building sector?
According to the World Green Building Council in 2022, buildings are responsible for 37% of global carbon emissions and consume 34% of the energy produced, making them the largest sector contributing to climate change. In Indonesia, the building sector contributed around 4.6% of direct emissions and 24.5% of indirect emissions of total energy-related carbon dioxide emissions in 2021.
In accordance with national targets, the Ministry of Public Works and Public Housing (PUPR) is targeting a reduction in greenhouse gas emissions in the building sub-sector in the country to 36 million tons CO2 by 2030. For this reason, a roadmap for implementing green building construction has been created as a reference for all stakeholders.
Why should a building be certified and why BGH?
A building should be certified to formally recognize and validate its commitment to sustainability and to demonstrate environmental responsibility. Green building certification provides a credible and independent assessment of a building's environmental performance, encompassing aspects such as, but not limited to, energy and water efficiency, material selection, and indoor environmental quality.
Indonesia's commitment to sustainable development has led to the establishment of its own green building certification, Bangunan Gedung Hijau (BGH), overseen by the Ministry of Public Works and Housing (PUPR). While various green building certifications exist in Indonesia, from local private initiatives like Greenship by the Green Building Council Indonesia (GBCI) to globally recognized standards such as EDGE and LEED, BGH offers a framework specifically tailored to the Indonesian climate, context, and national priorities. This localised approach ensures that green building practices are relevant and effective in supporting the government's sustainability agenda.
So, what is BGH?
As defined in Regulation of the Ministry of Public Works and Public Housing (Permen PUPR) no. 21 of 2021 regarding the performance assessment of BGH,
BGH is a building that meets technical standards for building structures and has significant measurable performance in saving energy, water, and other resources by applying green building principles, in accordance with its function and classification at every stage of development.
This regulation is a realization of Government Regulation (PP) no. 16 of 2021 regarding the Implementation of Law (UU) no. 28 of 2002 concerning Buildings and is further detailed in Circular Letter (SE) PUPR No. 01/SE/M/2022, which provides technical guidelines for its implementation.
This program prioritizes government-owned buildings, as research by PUPR shows they consume more energy than privately owned buildings. During the COVID-19 pandemic, data from the National Electricity Company (PLN) for the 2019-2020 period showed that electricity use for commercial and other sectors fell by 6-8%, while government offices only fell by 2%. As a result, the emission reduction target for government buildings was set at 1.91 million tonnes of CO2 by 2030.
Although BGH is mainly targeted for government buildings, the regulation also applies to other building types, such as public facilities, commercial buildings, warehouses, and even housing developments. The categories are separated by mandatory and recommended categories based on the building type, number of floors, and square meters. For example, a five-storey commercial building with area of 50,000 sqm is required to be BGH-certified, while a two-storey supermarket with less than 5,000 sqm area is not required, but may apply for BGH certification under the recommended category.
Why should developers apply BGH?
BGH serves as a national standard for development in Indonesia, backed by the government with a clear regulation. It has become one of the requirements in applying for building approval (PBG) and functional eligibility (SLF). While the BGH regulations might initially seem stringent for private developers, it's crucial to recognize the bigger picture. Implementing BGH is a significant step towards lessening the environmental impact of building projects throughout the building cycle.
According to DKI Jakarta's Department of Communication, Informatics, and Statistics, the green building idea can reduce energy consumption by about 42% compared to conventional structures of the same size. Implementing the BGH strategy can lower building operating expenses by 20–40%, allowing savings to be reinvested in facilities, system upgrades, and employee benefits. Green buildings can also improve worker productivity by up to 15% and enhance occupant health and well-being. Additionally, BGH promotes safe, environmentally responsible construction practices and fosters social responsibility through occupant engagement and education on green building practices.
Complying with BGH standards can present challenges due to various constraints and limited resources; however, it provides a comprehensive, life-cycle-based framework for designing, constructing, and operating healthier, more efficient, and sustainable buildings. BGH also has the potential to become a collaborative effort between developers and local governments, enhancing projects that, in turn, increase their property values while driving improvements to the standard itself.
How does the BGH Certification Work?
The BGH certification may apply to various building types, which are categorized based on the requirement type as follows:
New buildings (mandatory & recommended)
Existing buildings (mandatory & recommended)
Community Green Housing / H2M (recommended)
New Green Neighborhood / Kawasan Hijau (recommended)
Existing Green Neighborhood / Kawasan Hijau (recommended)
BGH is a point-based certification system. In total, there are 165 points that can be achieved across various categories throughout the building cycle: planning, construction, operational, and demolition phase. The categories to be assessed are mainly regarding site development, energy efficiency, water efficiency, indoor air quality, material selection, waste management, and wastewater management. In addition, BGH assesses the environmental impacts of construction activities, as well as the health and safety of workers and occupants.
The steps to achieve BGH certification are as follows:
Self-assessment:
Each BGH category is assessed based on the design or as-built documents. If the design/as-built conditions align with the required categories, the project will receive a certain amount of points. The points are then accumulated and a final assessment report is then provided to the local Department of Housing and Residential Areas.
Assessment by Local Authorities
The local authority will then review the submitted report and supporting documents. Several in-person meetings may be held to discuss findings and address any feedback. During this time, the local authority will also conduct site-visits to ensure that the submitted report is in accordance with the actual conditions.
Issuance of Certification
A BGH certificate may be issued after the local authority has confirmed that the submitted report and documents fully meet all BGH requirements and accurately reflect the current design or site conditions. The levels of certification that can be achieved are based on the total points obtained. The three levels of certification are as follows:
Pratama (minimum 75 points)
Madya (minimum 108 points)
Utama (minimum 132 points)
Sustainahaus’ Commitment to BGH and Indonesia’s Sustainability
Our first BGH project is the Jakarta Premium Outlets in Alam Sutera, Tangerang. The project has successfully obtained the Madya level certification in the construction phase, achieving 122 points. Our assessment mainly focuses on ensuring alignment between the design and construction phase, ensuring that the construction aligns with the BGH criteria claimed during the design phase. Key sustainable features contributing to this achievement include wastewater reuse for flushing and irrigation, the prioritization of sustainable and locally-sourced materials, the installation of water-saving sanitary fixtures, energy efficiency and good air quality through measures such as natural ventilation, sensor-equipped lighting, and CO sensor.
Furthermore, we ensure that contractors apply green construction practices, mainly regarding health, safety, and environment (HSE) protocols at the project level and for workers. This includes the use of safety nets, provision of healthy living space for workers, a strict no-smoking policy on-site, the utilization of low-noise and efficient equipment, and proper construction waste management involving third-party recycling programs.
Moving forward, we will use the valuable experience and insights gained from this project to further integrate sustainable practices into our future green building certification projects across Indonesia. We aim to consistently uphold the Bangunan Gedung Hijau framework, thereby playing a proactive role in reducing greenhouse gas emissions and contributing to Indonesia's national sustainability targets.
References
Regulation of the Ministry of Public Works and Public Housing (Pernen PUPR) no. 21 of 2021 on BGH Performance Assessment
Government Regulation (PP) no. 16 of 2021 on the implementation of Law (UU) no. 28 of 2002 concerning Buildings
SE PUPR 01/SE/M/2022 concerning Technical Guidance for BGH Performance Assessment
World Green Building Council (2023). New Global Policy Principles outline transformative
action for policymakers to accelerate sustainability in the built environment. Retrieved from https://worldgbc.org/article/global-policy-principles/#:~:text=Worldwide%2C%20buildings%20are%20responsible%20for,the%201.5%C2%B0C%20gap.
Hasjanah, K., Simanjuntak U. (2024). Building low emission cities in Indonesia. Institute for
Essential Services Reform. Retrieved from https://iesr.or.id/en/building-low-emission-cities-in-indonesia/
Hasjanah, K., Simanjuntak U. (2023). Indonesia’s emission reduction ambition needs to
increase. Institute for Essential Services Reform. Retrieved from https://iesr.or.id/en/indonesias-emission-reduction-ambition-needs-to-increase/
Muthiariny, D. (2024). PUPR Ministry designs green blueprint for sustainable building.
Tempo. Retreieved from https://en.tempo.co/read/1921543/pupr-ministry-designs-green-blueprint-for-sustainable-building
Dinas Komunikasi, Informatika dan Statistik Pemprov DKI Jakarta (n.d.). Kebijakan bangunan hijau. Jakarta.go.id. Retrieved from https://www.jakarta.go.id/kebijakan-bangunan-hijau
