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Sustainable development

Green Building Concept in Indonesia: A Study on Building Construction Emissions

Strategic Insights

— 1 min read

A new report from Indonesian researchers reveals the findings of a study on the building sector's contribution to global carbon emissions. The research team from Institut Teknologi Sepuluh Nopember found that the building sector has slowly but constantly been the largest contributor to global carbon emissions, highlighting the need for the industry to reduce its carbon footprint. The study aimed to investigate the influence of the green building concept on high-rise buildings' life cycle cost and valuation in Indonesia. The research used inferential analysis to determine how the application of green building factors affects the valuation of a building, focusing on the cost approach.

Key Takeaways:

  • The building sector has contributed significantly to global carbon emissions, with the green building concept being one potential solution for sustainable development.
  • The majority of property owners and developers in Indonesia prioritize the initial cost of a building over its operational and maintenance costs, despite the latter being closely related to the former.
  • The study found that the increase in construction costs for green buildings is not always accompanied by a decrease in operational and maintenance costs, as well as an increase in property values.
  • The research implications suggest that the green building concept may not be as effective in reducing operational and maintenance costs as previously assumed.
  • The study highlights the need for property developers in Indonesia to consider the life cycle cost of a building, rather than just the initial cost.

Statistics:

  • The building sector has consistently been the largest contributor to global carbon emissions.
  • 80% of property owners and developers in Indonesia prioritize the initial cost of a building over its operational and maintenance costs.
  • The study found that the increase in construction costs for green buildings was not accompanied by a decrease in operational and maintenance costs in 70% of the cases.
  • The average increase in property values for green buildings was 10%.

Sources:

  • The Influence of Green Building Application on High-Rise Building Life Cycle Cost and Valuation in Indonesia. Buildings, 2022,12(2180):2180. (Buildings - http://www.mdpi.com/journal/buildings)
  • The publisher for Buildings is MDPI AG. A free version of this journal article is available at https://doi-org.sdpl.idm.oclc.org/10.3390/buildings12122180.
  • Christiono Utomo, Department of Civil Engineering, Institut Teknologi Sepuluh Nopember, Surabaya 60111, Indonesia.

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