In order to conserve domestic energy resources and enhance their utilization efficiecy, Energy Provider, Energy User, Importer, and Producers are required to implement energy conservation. In light of these factors, the Government of Indonesia enacts Government Regulation Number 33/2023 on Energy Conservation to regulate rational and prudent use of energy in order to fulfill the energy need of the present and future. This regulation underscores a commitment to greener practices by setting stringent sector-wide energy efficiency standard.

1. Legal Brief
Newly Promulgated Empowering Sustainability
Regulation: an Overview of Government Regulation
33/2023 on Energy Conservation

2. BACKGROUND
Energy has a very important role and becomes a basic requirement in
sustainable national economic development. Therefore, Energy must be used
efficiently, rationally and wisely so that the present and future needs of Energy
can be fulfilled.
Considering the importance of efficient, rational and prudent use of Energy, the
Government needs to formulate a Regulation of the Government in order to
regulate the utilization of Energy Resources, Energy Sources and Energy,
through the implementation of Energy efficient technology, efficient and rational
Energy Utilization and implementation of Energy-Saving culture in order to
ensure the availability of environmentally sound national Energy.
Regulation of the Government Number 33 of 2023 in Energy Conservation (“GR
33/2023”) encompasses a broader regulation of energy conservation compared
to the previous framework of Government Relation Number 70 of 2009 on
Energy Conservation.
Upon the effective enforcement of GR 33/2023:
• all laws and regulations constituting the implementing regulations of
Government Regulation Number 70 of 2009 on Energy Conservation shall
remain valid insofar as it does not conflict with the provisions on this GR
33/2023; and
• Government Regulation Number 70 of 2009 on Energy Conservation, is
repealed and declared invalid.
Article 1 (1) GR 33/2023
Energy Conservation is a systematic, planned and integrated effort to preserve domestic energy resources and
increase the efficiency of its utilization
Energy Provider Energy Users Importer Producers
Energy Provider is a Business Entity,
Permanent Establishment, and
unincorporated Business Entity that
implements Energy Provision.
Energy Users are the Central Government
and Regional Governments, Business Entity,
Permanent Establishment, unincorporated
Business Entity and the community that
implement Energy Utilization.
Importer is an individual, Business
Entity, and/or Permanent Establishment
that carries out the import of Energy-
saving equipment.
Producers of Energy-Saving
Equipment, from this point onwards,
are referred to as Producers are
individuals or Business Entities that
produce Energy-saving equipment.
Article 1 (15) GR 33/2023
Article 1 (17) GR 33/2023
Article 1 (12) GR 33/2023. Article 1 (11) GR 33/2023.
Parties in Energy Conservation
Definition of Energy Conservation
General Section of Elucidation GR 33/2023 Article 64 and Article 65 GR 33/2023
A H R P L e g a l B r i e f

3. GENERAL CONCEPTS
ii.
The implementation of Energy
Conservation on the
downstream side shall
encompass the Energy
management stage that
include Energy Provision and
Energy Utilization activities,
shall be carried out through
the following programs:
1) Energy Management;
2)
Energy performance standards and Energy-
saving labels;
3) Energy Conservation financing;
4) development of Energy Conservation Service
Business;
5) increasing awareness of Energy Conservation;
6) capacity building of human resources;
7) Research and innovation; and
8) Cooperation in the Energy Conservation sector.
General Section of Elucidation GR 33/2023
Implementation of Energy Conservation
Facilities, Incentives, and Disincentives
Data and Information
Guidance and Supervision
1
2
3
4
Energy Conservation shall be carried out at all stages of Energy management
which include management of the upstream side and management of the
downstream side
The implementation of Energy Conservation in Energy Provision activities shall consist
of exploitation of Energy Resources and Energy production.
The implementation of Energy Conservation in Energy utilization activities shall consist
of activities in the transportation, industrial, household and building sectors.
a
The implementation of Energy
Conservation on the upstream
side shall be carried out
through the Conservation of
Energy Resources which in
practice shall be carried out in
accordance with the provisions
of laws and regulations in the
sub-sector
b
c
i.
ii.
A H R P L e g a l B r i e f

4. The scope of energy conservation as regulated in this GR 33/2023 encompasses energy management on the upstream and
downstream side.
ENERGY CONSERVATION OF UPSTREAM AND DOWNSTREAM MANAGEMENT
Article 2 GR 33/2023
Energy Utilization (as implemented by Users).
Article 3 GR 33/2023
Article 4 and Article 5 GR 33/2023
Energy Conservation of Upstream Management Energy Conservation of Downstream Management
The implementation of above mentioned shall be carried out
in accordance with the provisions of laws and regulations.
1 prioritized Energy Resources to be exploited /or provided;
2
3
the amount of Energy Resources that can be produced;
and
limitations of Energy Resources which within a certain limit cannot
be exploited.
Energy Conservation in the Energy management stage on upstream shall
aim to preserve Energy Resources and carried out through the
Conservation of Energy Resources. Conservation of Energy Resources
shall be in the form of the following arrangements:
Energy Conservation in the Energy management stage on the
downstream shall aim to increase Energy Efficiency and shall be carried
out through implementation of Energy-saving behavior and/or
implementation of energy efficient technology, The implementation of
Energy-saving behaviour and/or energy efficient technology shall be
carried out in the following activities:
Energy Provision (as implemented by Providers);
and
1
2
A H R P L e g a l B r i e f

5. ENERGY CONSERVATION OF DOWNSTREAM MANAGEMENT
The Energy Conservation Program on Energy Conservation of Downstream Management
Energy Management;
Shall be applied in the implementation of Energy efficient technology. Enforcement of
Energy performance standard and/or Energy-saving label shall be implemented
through the inclusion of minimum Energy performance standard label or Energy-
saving label. The implementation of efficient technology, Producers and Importers
must apply the domestic component level.
Article 13 (1), (4) & Article 14 (1), (3) GR 33/2023
Article 16 (1) )3) GR 33/2023
ENERGY MANAGEMENT
Shall be implemented through: (i) appointment of Energy manager; (ii) preparation
of Energy Efficiency program (shall at least contain information on (1) plan that will
be carried out; (2) type and consumption of Energy; (3) use of Energy-Saving
Equipment; (4) Energy Efficiency measures; (5) the number of products produced or
services provided; and (6) Energy performance); (iii) implementation of periodic
Energy Audits; and (iv) implementation of recommendations from the result of
Energy Audits.
Article 7 & Article 9 GR 33/2023
ENERGY PERFORMANCE STANDARDS AND ENERGY-SAVING LABELS
Energy Conservation financing for energy provision should be provided by
Energy Providers and Energy Conservation financing for energy utilization should
be provided by Energy Source Users and/or Energy Users. The government shall
synergize with Bank Indonesia and the Financial Services Authority to encourage
institutions within the financial sector to support the financing of Energy
Conservation.
ENERGY CONSERVATION FINANCING
Article 17 GR 33/2023
INCREASING AWARENESS OF ENERGY CONSERVATION
Article 24 GR 33/2023
CAPACITY BUILDING OF HUMAN RESOURCES
Shall be carried out through (i) training in the field of Energy
Conservation (at least in the form of Energy manager training, Energy
auditor training, Energy performance measurement and verification
training and/or system optimization and mastery of technology); and/or
(ii) competency certification in the field of Energy Conservation.
Article 25 GR 33/2023
Article 26 GR 33/2023
The type of this cooperation can be undertaken between Energy
Providers, Energy Source Users and/or Energy Users with other
parties and shall be carried out effectively and efficiently in
accordance with the provisions of laws and regulations.
COOPERATION IN THE ENERGY CONSERVATION SECTOR
Article 27 GR 33/2023
Shall be carried out through technical guidance, dissemination of
information and/or granting of awards
Shall be carried out to improve the implementation of Energy Conservation of
downstream management. The Energy Conservation service business shall be
carried out by (i) business entities, (ii) public service agencies or (iii) technical
implementing units, that carry out business or provide Energy Conservation services
and shall consist of these activities:
(i) implementation of Investment Grade Energy Audit;
(ii) financing of Energy Efficiency Projects;
(iii) implementation of installation work and/or construction as well as monitoring and
supervision of Energy Efficiency Projects;
(iv) operation, maintenance and repair of Energy installations; and/or
(v) Energy performance measurement and verification.
DEVELOPMENT OF ENERGY CONSERVATION SERVICE BUSINESS
A H R P L e g a l B r i e f
RESEARCH AND INNOVATION
Shall be carried out at least through (i) research and innovation on
the process of Energy Provision and efficient Energy Utilization; (ii)
research and innovation of Energy efficient technology; (iii)
prototype of application of Energy efficient technology; and/or (iv)
replication of the application of energy efficient technology.

6. ENERGY CONSERVATION IN ENERGY PROVISION AND ENERGY UTILIZATION
Article 29 GR 33/2023
Energy Conservation in Energy Provision
Energy Conservation in Energy Utilization
Article 34 (1) (2) GR 33/2023
Article 35 & Article 36 GR 33/2023
i.
Energy
Conservation in
Transportation
Sector
iii.
Energy
Conservation in
Household
Sector
ii.
Energy
Conservation in
Industrial Sector
iv.
Energy
Conservation
in Building
Sector
The Implementation of Energy Conservation by Energy Providers shall be carried out in (i) exploitation of Energy Resources; and/or (ii) Energy production. The
Implementation of Energy Conservation shall be reported to the Minister of Energy and Mineral Resource (“Minister”) every year.
Energy Providers who utilize Energy Sources and/or Energy:
1. greater than or equal to 6,000 (six thousand) equivalents to tons of oil per year, must carry out Energy Conservation activities through Energy Management; and
2. less than 6,000 (six thousand) equivalents to tons of oil per year, may carry out Energy Conservation activities through Energy Management.
Energy Source Users and/or energy Users in the transportation who use Energy Sources and/or
Energy:
1. greater than or equal to 4,000 (four thousand) equivalents to tons of oil per year, must carry
out Energy Conservation activities through Energy Management;
2. less than 4,000 (four thousand) equivalents to tons of oil per year, may carry out Energy
Conservation activities through Energy Management
Energy Source Users and/or energy Users in the industrial sector who use
Energy Sources and/or Energy:
1. greater than or equal to 4,000 (four thousand) equivalents to tons of oil
per year, must carry out Energy Conservation activities through Energy
Management;
2. less than 4,000 (four thousand) equivalents to tons of oil per year, may
carry out Energy Conservation activities through Energy Management.
Energy Conservation in household sector shall be carried out by Energy Source
Users and/or Energy Users through the use of efficient Energy Utilization
Equipment.
Energy Source Users and/or Energy Users in the building sector who use Energy Sources and/or Energy:
1. greater than 500 (five hundred) equivalents to tons of oil per year, must carry out Energy Conservation
activities through Energy Management;
2. less than 500 (five hundred) equivalents to tons of oil per year, may carry out Energy Conservation activities
through Energy Management.
Article 33 (1) GR 33/2023
Article 32 (1) (2) GR 33/2023
Article 31 (1) (2) GR 33/2023
The implementation of Energy Management on transportation sector, industrial
sector and building sector shall be reported to the Minister every year and the
limits on the use of Energy Sources and/or Energy on transportation sector,
industrial sector and building sector shall be exampled for the implementation of
Energy Conservation by the Government and Regional Governments.
EFFECTIVE ENFORCEMENT
The obligation to implement Energy Conservation through Energy
Management by Energy Source Users and/or Energy Users for (i)
transportation sector; (ii) industry sector; and (iii) building sector
shall come into force 12 months after the promulgation of GR
33/2023, which on 16 June 2024.
Article 63 GR 33/2023
Energy Source Users and/or Energy Users shall
encompass the following sectors:
Article 30 GR 33/2023
A H R P L e g a l B r i e f

7. IMPLEMENTATION OF ENERGY CONSERVATION BY THE GOVERNMENT
AND REGIONAL GOVERNMENT
A H R P L e g a l B r i e f
The Government and Regional Governments must carry out Energy Conservation through Energy Management in the
Energy Utilization activities. The Minister shall implement the technical guidance for the implementation of Energy
Conservation to the State Minister/Agencies and Regional Governments. For the implementation of Energy Conservation,
the Government and Regional Government shall allocate budgets that originate from (i) state revenue and expenditure
budget and/or regional revenue and expenditure budget; or (ii) other legitimate sources of funding in accordance with the
provisions of laws and regulations.
Article 37 (1), Article 38 and Article 43 GR 33/2023
The implementation of Energy Conservation shall be applied to facilities and
infrastructure managed by State Ministries/Agencies, are (i) facilities which are
controlled and/or owned by the state/government; (ii) financed by the state
revenue and expenditure budget or regional revenue and expenditure budget;
and (iii) under the management of state agencies in a broad sense, the
utilization of which is specifically intended for activities related to the state and
government administration.
Article 39 GR 33/2023
Implementation of Energy Conservation by the Government or Regional
Governments may be carried out through cooperation and in the event that
the cooperation is conducted for Energy Conservation infrastructure, the
scheme of cooperation between the Government or Regional Governments
with Business Entities may be used in accordance with the provisions of laws
and regulations.
Article 40 GR 33/2023
Article 41 GR 33/2023
• Regent/mayor must report the Energy Conservation activities to the
governor;
• The governor must report the Energy Conservation activities to the
Minister;
• Heads of State Ministries/Agencies shall submit the result of the
implementation of Energy Conservation activities to the Minister;
Those report abovementioned shall be carried out 1 (one) time on 1 (one)
year.
• The Minister shall conduct monitoring and evaluation based on reports on
Energy Conservation activities;
• The result of monitoring and evaluation shall be in the form of results of the
implementation of Energy Conservation;
• The results of the implementation of energy Conservation shall be
submitted to the minister who organizes government affairs in the field of
state apparatus and bureaucratic reform and the minister who organizes
government affairs in the field of domestic government administration;
• The results of the implementation of Energy Conservation shall be used as
an indicator in institutional performance assessment;
• The result of the implementation of Energy Conservation shall be copied to
the governor and the governor shall submit the result of the implementation
of Energy Conservation by the regency/city Regional Government to the
regent/mayor.
Article 42 GR 33/2023
Obligation to Report Monitoring and Evaluation

8. THE ROLE OF THE COMMUNITY IN THE IMPLEMENTATION OF ENERGY
CONSERVATION
The Community shall play a role in the implementation of Energy Conservation in Energy Utilization activities. The role of
the community in the implementation of Energy Conservation shall include (i) the use of Energy-saving technology; (ii)
household Energy usage savings; (iii) the use of mass transportation; and (iv) build awareness of Energy Saving in the
work environment or household.
FACILITIES, INCENTIVES AND DISINCENTIVES (1/2)
The facilities shall be in the form of facilities to obtain:
a. access to information;
b. consultancy services; and
c. access to financing.
Article 45 GR 33/2023
Facilities
1 Energy Providers;
Energy Source Users and/or Energy Users;
Producers; and
Importers
who carry out Energy Conservation.
The Government and/or Regional Government shall provide facilities to:
2
3
4
b
a
c
Incentives
Criteria
Energy Providers
b Energy Source Users and/or Users on transportation, industry and building sector
Producers
The fiscal incentives shall be given in accordance with the provisions of laws and regulations in the state finance
sector.
Criteria the successful implementation for:
• Providers and Users, shall be in the form of Energy performance improvement within certain period and shall be proven
by a report on the measurement and verification of Energy performance;
• Producers, within a certain period can produce Energy-Saving Equipment which Energy Efficiency is higher than the
determined benchmark.
Non-Fiscal
The non-fiscal incentives shall be in the form of (i) provision of Energy Conservation training; (ii) granting of proof of
Energy-Saving certificate; and/or implementation of Energy Audit.
Article 47-48 and 50 GR 33/2023
a
c
Fiscal
A H R P L e g a l B r i e f
Article 46 GR 33/2023
who have succeeded in implementing Energy Conservation in a certain period.

9. FACILITIES, INCENTIVES AND DISINCENTIVES (2/2)
DATA AND INFORMATION
GUIDANCE AND SUPERVISION
The Government, Regional Governments, State-Owned Enterprises, Regional-Owned Enterprises and Business Entities shall grant access, distribution and
exchange of data and information in the implementation of Energy Conservation. The Government shall standardize, manage and develop information data
systems for the implementation of Energy Conservation.
Article 54 and Article 55 (1) GR 33/2023
The Minister, relevant ministers/heads of institutions, governors and regents/mayors, in accordance with their authority, shall provide guidance on and supervisions of
the implementation of Energy Conservation and shall submit the result of guidance and supervision of the implementation of Energy Conservation to the Minister. The
Minister evaluates the implementation of Energy Conservation based on the result of the implementation of guidance and supervision.
Article 56 GR 33/2023
Guidance on the implementation of Energy Conservation shall include (i) awareness raising; (ii) capacity building of human resources; and (iii) research and
innovation, and shall be carried out toward (i) Energy Providers; (ii) Energy Source Users and/or Energy Users; and (iii) Producers.
Article 57 GR 33/2023
Supervision of the implementation of Energy Conservation shall include supervision on the implementation of Energy Conservation in Energy Provision and the
implementation of Energy Conservation in Energy Utilization activities.
Article 58 GR 33/2023
Guidance and supervision of the implementation of Energy Conservation shall be carried out by the supervisory official for the implementation of Energy
Conservation. The Minister, relevant minister/heads of institutions, governors and regents/mayors in accordance with their respective authorities shall carry out
monitoring and evaluation of Energy Conservation activities and the result of monitoring and evaluation shall be reported to the Minister for evaluation.
Article 59 (1) and Article 60 GR 33/2023
Energy Providers, Energy Source Users and/or Energy Users on transportation, industry and building sector, who do not implement Energy Conservation through
Energy Management shall be subject to disincentives by the Minister. The disincentives shall be in the form of:
a. written warning, shall be given for a maximum of 3 (three) times with a maximum period of warnings of 1 (one) month each;
b. announcements in the mass media, shall be given to the Energy Providers and Energy Source Users and/or Energy Users who have received the third written
warning have not implemented Energy Conservation through Energy Management;
c. recommendation to the relevant minister, governor or regent/mayor in accordance with their authority to revoke the incentives that have been given,
shall be given to Energy Providers and Energy Source Users and/or Energy Users in the event that 1 (one) month after the announcement in the mass media
Energy Conservation through Energy Management is not carried out by Energy Providers and Energy Source Users and/or Energy Users.
Article 51 GR 33/2023
b
a
c
A H R P L e g a l B r i e f
Disincentives

10. We will continue to follow the developments on this topic and provide additional information as it becomes
available. If you have any questions on this topic, please contact:
Fadra Heryndra
heryndra@ahrplaw.com
Hany Areta Athayalia
hany@ahrplaw.com
Zahra Shafira Belanusa
zahra@ahrplaw.com
This publication has been prepared by AHRP for educational and informational purposes only. The information contained in this publication is not
intended and should not be construed as legal advice. Due to the rapidly changing nature of law, AHRP makes no warranty or guarantee concerning
the accuracy or completeness of this content. You should consult with an attorney to review the current status of the law and how it applies to your
circumstances before deciding to take any action.
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