Energy demand continues to grow alongside industrial development, economic activity, and increasing electricity needs across various sectors. At the same time, companies are facing growing pressure to improve energy efficiency and reduce the environmental impact of their operations.

These conditions make energy transition an increasingly relevant part of corporate energy strategies. Energy transition is not only about adopting cleaner energy sources, but also involves changes in how energy is generated, consumed, managed, and developed.

For companies, understanding energy policies and regulations is important before making decisions related to investment or renewable energy adoption. Policy developments can influence project planning, technology selection, infrastructure requirements, and long-term energy strategies.

Understanding Energy Transition Policies in Indonesia

In simple terms, energy transition refers to the process of moving toward a more sustainable energy system by increasing the use of new and renewable energy while reducing dependence on fossil-based energy sources.

In the electricity sector, Indonesia's energy transition is closely related to efforts to develop renewable energy sources while ensuring that electricity demand continues to be met reliably.

Energy transition also goes beyond power generation. For businesses, it can involve managing energy consumption, improving efficiency, adopting cleaner technologies, and considering renewable energy sources as part of their operational strategy.

For this reason, companies developing investment plans or sustainability strategies should pay attention to developments in Indonesia's energy policies.

Renewable Energy Regulations Companies Should Know

Several regulations provide the framework for Indonesia's renewable energy development and electricity-sector energy transition. Two important regulations include:

Presidential Regulation No. 112 of 2022

Presidential Regulation No. 112 of 2022 on the Acceleration of Renewable Energy Development for Electricity Supply provides a framework for accelerating renewable energy-based power generation.

The regulation is relevant to the development of renewable electricity in Indonesia and provides a policy framework for accelerating the development of renewable energy power plants. It also includes provisions related to fiscal and non-fiscal incentives for business entities involved in renewable energy development.

For companies, understanding this regulation can provide useful context when considering renewable energy opportunities and developments in Indonesia's electricity sector.

Minister of Energy and Mineral Resources Regulation No. 10 of 2025

Minister of Energy and Mineral Resources Regulation No. 10 of 2025 on the Roadmap for Energy Transition in the Electricity Sector provides guidance for implementing the energy transition in Indonesia's electricity sector.

The regulation was established on April 10, 2025, and promulgated on April 15, 2025. It serves as a roadmap for the electricity-sector energy transition and supports Indonesia's efforts to reduce greenhouse gas emissions.

For businesses, this regulation provides additional context on the direction of the electricity sector and the broader development of Indonesia's energy transition.

How Energy Transition Policies Affect Businesses

Changes in energy transition policies can influence how companies approach energy management and long-term investment.

Several considerations are particularly relevant:

Encouraging Energy Efficiency

The energy transition encourages companies to evaluate how efficiently energy is consumed across their facilities. Energy monitoring, efficient equipment, and improvements to operational systems can become part of a broader energy strategy.

Creating Opportunities for Renewable Energy

The development of renewable energy policies also creates opportunities for businesses to explore cleaner energy sources, including solar PV systems.

For companies with significant electricity consumption and suitable facilities, renewable energy can become part of a long-term strategy for managing energy consumption.

Supporting Sustainability Goals

Energy efficiency and renewable energy adoption can support corporate sustainability initiatives by helping companies reduce the environmental impact associated with their energy consumption.

This can be particularly relevant for businesses that have established environmental, social, and governance (ESG) targets or broader sustainability commitments.

Influencing Investment Planning

Energy-related investments typically involve long-term considerations. Therefore, companies need to consider not only current energy requirements but also the development of relevant policies, regulations, technologies, and infrastructure when planning future investments.

Challenges in Implementing the Energy Transition

Although the energy transition presents opportunities, implementation can involve several challenges.

Investment requirements are one consideration, particularly for companies evaluating new energy systems or infrastructure.

Infrastructure readiness is another important factor. Existing electrical systems and facilities may require assessment before integrating new technologies.

Companies also need to consider whether a particular technology is suitable for their operational requirements, energy consumption profile, and facility conditions.

In addition, understanding applicable regulations is important to ensure that energy projects are planned according to the relevant requirements and current policy framework.

HIJAU's Role in Supporting the Energy Transition

Implementing the energy transition requires an approach tailored to the conditions and requirements of each company. Facilities can have different energy consumption patterns, capacities, infrastructure, and operational requirements.

HIJAU helps companies adopt sustainable energy and efficiency solutions through an approach tailored to their facility requirements.

One of the solutions offered is Solar as a Service, which allows companies to utilize solar energy through a service-based model, reducing the need to manage the entire investment and technical complexity of the system independently.

In addition to solar energy solutions, HIJAU also provides a Cooling as a Service approach to help companies optimize cooling systems in facilities with significant cooling requirements.

The implementation of these solutions can involve several stages, including needs analysis, planning, system design, implementation, monitoring, maintenance, and technical support.

This approach enables companies to evaluate the transition toward more efficient and sustainable technologies based on their actual facility conditions and long-term energy strategies.

Conclusion

Understanding energy policies and regulations is an important part of developing a long-term corporate energy strategy. For companies considering renewable energy or energy-efficiency initiatives, regulatory developments can provide valuable context for evaluating potential investments and implementation approaches.

In Indonesia, regulations such as Presidential Regulation No. 112 of 2022 and Minister of Energy and Mineral Resources Regulation No. 10 of 2025 form part of the policy framework supporting renewable energy development and the electricity-sector energy transition.

For businesses, energy transition is not simply about changing energy sources. It is also about developing an energy strategy that is efficient, relevant to operational requirements, and aligned with long-term sustainability objectives.

HIJAU is ready to help companies explore energy and efficiency solutions tailored to their facility requirements and business strategies. Talk to HIJAU to explore your company's energy transition opportunities.

FAQ

1. Can changes in energy regulations affect corporate energy investments?

Yes. Regulatory developments can influence investment planning, technology selection, infrastructure requirements, project models, and implementation timelines. Companies should therefore consider the latest applicable regulations when evaluating energy investments.

2. How can companies stay updated on energy transition policies in Indonesia?

Companies can monitor official publications and regulations issued by relevant government institutions, particularly the Ministry of Energy and Mineral Resources and other authorities involved in the energy sector.

3. What should companies consider when budgeting for renewable energy?

Companies should consider their energy requirements, system capacity, facility conditions, technology selection, installation and maintenance requirements, as well as the most appropriate investment or service model.

4. How can companies align their energy strategy with sustainability targets?

Companies can evaluate opportunities to improve energy efficiency and incorporate renewable energy into their operations. These initiatives can contribute to broader environmental and sustainability objectives.

5. How can a company assess its readiness for the energy transition?

A company can begin by evaluating its energy consumption profile, existing infrastructure, operational requirements, energy-efficiency potential, renewable energy opportunities, and available budget or resources.