Peraturan Pemerintah 79/2014 (Peraturan Pemerintah Nomor 79 Tahun 2014 tentang Kebijakan Energi Nasional) was the Indonesian government regulation that set the national energy policy (kebijakan energi nasional, KEN) for the period 2014 to 2050. It was signed by President Susilo Bambang Yudhoyono on 17 October 2014 and took effect on promulgation the same day, revoking the national energy policy of 2006, which had been set by presidential regulation.^[1][2] It was issued to implement Pasal 11 ayat (2) of Undang-Undang 30/2007 on Energy, after the House of Representatives had approved the draft policy.^[3] It remained in force until 15 September 2025, when PP 40/2025 replaced it.^[2:1][4]

The policy aimed at energy independence and energy security, and rested on a change of approach stated in its elucidation: energy resources were to be treated as capital for national development rather than as export commodities.^[5][6] Its best-known provisions were the targets for the primary energy mix, under which new and renewable energy was to supply at least 23 per cent of primary energy in 2025 and at least 31 per cent in 2050, provided that it was economic, while the share of oil was to fall below 25 per cent by 2025.^[7]

The regulation was the basis for the national general energy plan, set in 2017 by Perpres 22/2017, and for the national electricity plan.^[8][9] It sits within the field described at mining and energy regulation in Indonesia. CRPG's regulatory tracker published an analysis of it in November 2025.^[10]

¶ Background

Undang-Undang 30/2007 on Energy requires the national energy policy to be set by the Government with the approval of the House of Representatives.^[11] PP 79/2014 was issued under that requirement; its preamble records the House's approval of the draft.^[3:1] Before it, the policy had been set by Peraturan Presiden 5/2006, which Pasal 32 revoked; Pasal 31 kept that presidential regulation's implementing rules in force as far as they did not conflict with the new policy.^[12]

The general elucidation lists the problems the policy was meant to address, among them inefficient energy use, subsidies that did not reach their targets, energy prices below economic value, low investment, dependence on fossil energy without matching reserves, limited infrastructure, weak domestic technology and low public access to energy. It states that primary energy had been allocated to export to earn foreign exchange, leaving domestic needs for fuel and industrial feedstock unmet.^[6:1]

¶ Structure and objectives

The regulation has 33 articles in six chapters. Pasal 2 defines the national energy policy as energy management policy based on the principles of fairness, sustainability and environmental awareness, to achieve energy independence and national energy security. Pasal 3 divides it into four main policies (energy availability for national needs, energy development priorities, use of national energy resources, and national energy reserves) and six supporting policies (conservation and diversification; environment and safety; prices, subsidies and incentives; infrastructure, public access and the energy industry; research and technology; and institutions and funding).^[5:1] Pasal 4 applies the policy from 2014 to 2050.^[5:2]

Pasal 6 lists what independence and security require, beginning with the principle that energy resources are not to be treated merely as export commodities but as capital for national development, and including efficient energy use in all sectors, fair access to energy, domestic technological and industrial capacity, employment and environmental protection.^[5:3]

¶ Targets

Pasal 8 set targets for primary energy supply of about 400 million tonnes of oil equivalent (MTOE) in 2025 and about 1,000 MTOE in 2050, and for power generation capacity of about 115 gigawatts in 2025 and about 430 gigawatts in 2050. Per capita electricity use was to reach about 2,500 kWh in 2025 and about 7,000 kWh in 2050.^[13] Pasal 9 added an energy elasticity below 1 by 2025, a reduction of final energy intensity by 1 per cent a year to 2025, an electrification ratio of 85 per cent in 2015 and close to 100 per cent in 2020, and an 85 per cent household gas use ratio in 2015.^[7:1]

The elucidation of Pasal 9 provides that the new and renewable energy target was to be broken down by type of energy in the national general energy plan.^[14]

¶ Policy directions

Pasal 10 required energy availability to be secured by more exploration and production, a more reliable supply system, a gradual reduction of fossil energy exports, especially gas and coal, with a deadline for stopping them, and a balance between additions to fossil reserves and production.^[15] Pasal 11 set the order of priority: maximise renewable energy with regard to its economics, minimise oil, optimise natural gas and new energy, and use coal as the mainstay of national supply. Nuclear energy was exempted from that order and was to be considered as a last option, with strict attention to safety.^[16] Pasal 12 assigned each source to its uses; hydro, geothermal, ocean and wind energy, for example, were directed to electricity generation, and biofuels to replacing oil in transport and industry while maintaining food security.^[17]

Among the supporting policies, Pasal 17 required producers and consumers to conserve energy and directed governments to set conservation guidelines, including labelling of energy-using equipment and energy management obligations, including audits, for energy users.^[18] Pasal 20 provided that energy prices were to be set on the basis of fair economic value, required a feed-in tariff mechanism for selling prices of renewable energy, and directed the government to regulate a renewable energy market with minimum quotas; Pasal 21 limited subsidies to the poor and required fuel and electricity subsidies to be reduced gradually.^[19] Pasal 27 allowed a depletion premium on fossil energy to fund exploration, renewable energy and infrastructure.^[20]

¶ Oversight and review

The National Energy Council (Dewan Energi Nasional) supervised the implementation of the policy where it cut across sectors (Pasal 28). The policy could be reviewed after at least five years if necessary (Pasal 29) and was the basis for the national general energy plan and the national general electricity plan (Pasal 30).^[8:1] The national general energy plan was set in March 2017 by Perpres 22/2017, which cites PP 79/2014 among its legal bases.^[9:1]

PP 40/2025 revoked PP 79/2014 with effect from 15 September 2025, extended the policy period to 2060 and replaced its targets with ranges tied to net zero emissions in 2060. Its Pasal 91 keeps the implementing regulations of PP 79/2014 in force as far as they do not conflict with it.^[4:1][21]

¶ See also

• Permen ESDM 14/2012
• Permen ESDM 12/2017
• PP 33/2023

¶ External links

• PP No. 79 Tahun 2014 (JDIH BPK)
• CRPG: What National Energy Policy Framework Exists Under PP 79/2014? (crpg.id, 26 November 2025) (free sign-in required on crpg.id)

¶ References