As the implementing regulation to the Government Regulation Number 33 Year 2023 on Energy Conservation, the Ministry of Energy and Mineral Resources has issued the Regulation of the Minister of Energy and Mineral Resources Number 8 Year 2025 regarding Energy Management (“MoE 8/2025”), which came into effect on 13 March 2025. This set of regulations regulates about energy conservation efforts by means of, among others, reducing the threshold of energy consumption.
Under these regulations, energy conservation is carried out by means of Energy Management which must be implemented by Energy Provider (Penyedia Energi), Energy Source User (Pengguna Sumber Energi), and/or Energy User (Pengguna Energi) which satisfy certain energy consumption threshold. The Energy Management itself is implemented through (a) the appointment of Energy Manager, (b) preparing an Energy Efficiency program, (c) routine Energy Audit and (d) the implementation of recommendation based on the result of Energy Audit.
Energy Manager refers to the highest leader in the organization who must hold competency certificate. The Energy Manager will form the Energy Management team which will set out, among others, the Energy policy, Energy Management plan and improving Energy Performance sustainably. Additionally, Energy Management team will prepare Energy Efficiency Program which includes at least the implementation plan, type of Energy consumption, utilization of low-energy equipment, and Energy Efficiency step.
As indicated by its name, Energy Audit is evaluation process towards the Energy Utilization and identification of potential to reduce Energy consumption as well as recommendation to enhance efficiency in Energy Source User and Energy User for the purpose of Energy Conservation. Energy Audit will be carried out by internal and/or external Energy Auditor who hold competency certificate.
Implementation of recommendation based on the result of Energy Audit must be carried out at the latest 3 years as of the completion of the Energy Audit.
It is important to highlight that Energy Provider (Penyedia Energy), Energy Source User (Pengguna Sumber Energi) and/or Energy User (Pengguna Energi) must report their Energy Management to the Minister of Energy and Mineral Resource annually, at the latest June 30th of the following year. The report must be submitted electronically as provided by the Minister of Energy and Mineral Resource unless when there is trouble in the system where manual reporting will be required on case-by-case basis.
Article 25 of this MoE 8/2025 provides that the Minister of Energy and Mineral Resources may give incentives to the Energy Provider (Penyedia Energy), Energy Source User (Pengguna Sumber Energi) and/or Energy User (Pengguna Energi) whosatisfy the outstanding category based on the benchmarking set out in the Ministerial Decision or when theyachieve at least 1% increment of Energy Performance against the previous year.
The incentives will be in fiscal and/or non-fiscal form. The implementation of fiscal incentives will be further regulated through the relevant Minister of Finance regulation. Meanwhile, the non-fiscal incentives will be granted in the form of training of Energy Conservation, certificate of Energy Reduction, assistance in the preparation of climate mitigation plan and other forms as provided under the relevant regulations.
In contrary, in the event of failure to implement the obligations set out in Article 4 to 17 of the MoE 8/2025, i.e. (a) appointing Energy Manager, (b) preparing Energy Management plan, (c) preparing Energy Efficiency plan, (d) conducting routine Energy Audit, (e) implementing the recommendation from the result of Energy Audit, and (f) submitting the Energy Management report, will be subject to disincentives. It is important to note that the disincentives are in the form of written warning, public announcement, and/or recommendation to the relevant authorities to revoke any granted incentives. Considering the potential aggravating impact of the disincentives, it is advisable for business actors to closely monitor the development of this MoE 8/2025.
Considering wide aspects of this MoE 8/2025, we are anticipating further regulations and development in its implementation. If you are interested in this topic and would like to deep dive into it for your business, please do reach out to us. We are looking forward to walk with you side-by-side in navigating your vision and business moves in Indonesia.
