Breaking The Policy-Performance Paradox: A TwoTier Framework for Accelerating Green Technology Adoption

This study addresses the significant disparity between Indonesia's energy conservation policy objectives and their actual implementation, developing a novel framework to promote the adoption of green technology among industrial and small- and medium-sized enterprises (SMEs). Indonesia has pledged to reduce its carbon emissions by 29–41% by 2030 as part of the Paris Agreement; ‎however, it is only utilizing 30% of its energy-saving potential. This means there is an urgent need for comprehensive business models ‎that connect policy and implementation while also addressing complex socio-technical issues. The research utilizes an innovative two-tier methodological framework that combines qualitative with quantitative validation. First, systemic problem structuring employs ‎stakeholder interviews and focus group discussions to delineate policy fragmentation and socio-technical conflicts, facilitated by expert ‎consultations with five industry professionals from Jakarta, Bekasi, and Tangerang. Second, structured questionnaires administered to 303 ‎industrial companies in Jakarta, Tangerang, and Bekasi are checked for validity and reliability before hierarchical regression analysis is used ‎to test organizational readiness factors. Third, participatory solution design utilizes AI-driven sentiment analysis, making it easier to ‎objectively understand qualitative data. It also develops retrofitting finance models that work with the businesses of stakeholders. The two-tier regression and mediation model shows that policy support alone accounts for 42.6% of the variance in performance. When technology ‎awareness, implementation capability, and employee capacity are added, this number rises to 53.6%. The framework validates that effective ‎energy efficiency adoption necessitates the synergistic integration of top-down policy frameworks with bottom-up organizational readiness ‎factors, contesting solely economic models while offering pragmatic insights for Indonesia's 2060 Net Zero objectives and sustainable ‎development goals‎.