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

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.