Energy Conservation (Government Regulation No. 70/2009)

Last updated: 5 November 2017
Government Regulation No. 70/2009 on Energy Conservation makes provisions for the proper utilisation of energy resources, energy sources and energy through the application of energy efficient technology; efficient and rational utilisation of energy; and responsibilities of the government, regional governments, entrepreneurs and communities. It is the implementing legislation on energy conservation with regard to the Energy Law.
This regulation also mandates the development of General Plan of Energy Conservation (Rencana Induk Konservasi Energi Nasional, RIKEN) as the guideline for the stakeholders to implement energy efficiency and conservation in Indonesia.
This Regulation also stipulates the obligation for producers or importers of energy appliances to implement energy efficiency labelling.
The Regulation also seeks to develop and implement a series of incentives for improved energy management. These include tax exemption and fiscal incentives on imports of energy saving equipment and appliances, and special low interest rates on investments in energy conservation. To reduce non-compliance, the regulation seeks to provide disincentives. These include written notices to comply, public announcements of non-compliance, fines and reductions of energy supply.
The Regulation allows for the establishment of a series of fiscal incentives to promote energy efficiency among industrial energy users, although they have yet to be introduced. The regulation outlines mandatory audits and public reporting on energy efficiency, which are aligned with international best practice. Indonesia aims to implement energy management practices for sectors where energy use is greater than 6 000 toe or 70 gigawatt hours per year. More specifically, regulation of MEPS for industrial equipment and the adoption of international standards are in the process of being introduced. Major industries with strong energy efficiency potential in Indonesia include textiles, iron and steel.

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