Schneider Electric has conducted its annual survey titled Green Impact Gap to reveal how companies are incorporating sustainability as a strategy to tackle economic challenges. One of the key tools being utilized for this sustainability ambition is artificial intelligence (AI).
According to Martin Setiawan, the President Director of Schneider Electric Indonesia & Timor Leste, Indonesian companies are strategically focusing on sustainability to thrive in a dynamic business environment. They are leveraging digitalization and AI early on to enhance operational efficiency, reduce risks, and create long-term value.
The survey highlights that 48% of Indonesian companies have implemented AI to support sustainability ambitions, positioning this technology as an accelerator for sustainability. Additionally, 37% of companies are using AI to optimize processes and resource utilization, making it the most widely adopted digital technology for sustainability.
Moreover, AI’s benefits for sustainability in Indonesia include automating data collection and reporting (49%), energy consumption optimization (43%), and support for product design and development (47%). The direct response to recurring energy risks in Indonesia, where nearly 45% of companies identify energy price fluctuations as a major risk, underscores the importance of AI for energy optimization.
Industries view innovation and competitiveness as key drivers, with data center players being prominent in emphasizing this necessity. Furthermore, 65% of respondents state that investing in innovation and technology is essential to address the surge in computational demand in Indonesia and ensure more efficient operations with low emissions.
The discussion around energy requirements for AI at a global level has prompted 37% of Indonesian business leaders to adopt green IT policies to reduce carbon footprints from computing and data storage. Decreasing decarbonization barriers, such as limited reporting on clean energy alternatives, lack of supportive resources, immature clean energy technology, and regulatory hurdles, signals a conducive climate for accelerating sustainability transformation across sectors.
Despite the strengthening commitment of Indonesian companies towards sustainability, the survey also identifies a ‘Green Impact Gap’ – a disparity between sustainability targets and actual actions to achieve them. While 97% of Indonesian companies have sustainability targets, less than half have taken comprehensive steps towards achieving them. This gap has consistently hovered around 48% since 2023.
