Peraturan Menteri Energi dan Sumber Daya Mineral 1/2026 (Peraturan Menteri Energi dan Sumber Daya Mineral Nomor 1 Tahun 2026 tentang Usaha Jasa Konservasi Energi) is an Indonesian ministerial regulation on energy conservation service businesses, the firms that audit, finance, build, operate and verify energy efficiency projects for others. It was signed by the Minister of Energy and Mineral Resources, Bahlil Lahadalia, on 5 January 2026 and took effect on its promulgation on 8 January 2026.^[1][2] It implements Pasal 23 of Peraturan Pemerintah 33/2023 on energy conservation, and belongs to the energy rules surveyed at mining and energy regulation in Indonesia.^[3]

The regulation lets business entities, public service agencies and technical implementation units provide energy conservation services, provided they hold a business licence. It defines five service activities, sets the minimum content of an investment-grade energy audit, makes the energy saving performance contract the form of project financing, and lists the business models a service agreement may use, from guaranteed and shared savings to energy as a service.^[4][5][6]

Providers must report to the ministry when licensed, when they expand, and each year. The Minister supervises them, and a provider that fails to report receives a written warning.^[7][8] CRPG's regulatory tracker published two analyses of the regulation, in April and July 2026.^[9][10]

¶ Background

The preamble cites Pasal 23 of PP 33/2023 on energy conservation as requiring a ministerial regulation on energy conservation service businesses. Its legal bases include the Energy Law, UU 30/2007, the State Ministries Law as amended in 2024, PP 33/2023 and Perpres 169/2024 on the ministry.^[3:1] Pasal 1 defines energy conservation (konservasi energi) as a systematic, planned and integrated effort to preserve domestic energy resources and improve the efficiency of their use, and energy efficiency as the efficient and appropriate use of energy while giving priority to safety, security, comfort and productivity. It distinguishes energy providers, which are businesses, from users of energy sources and users of energy, which may be the central or a regional government, a business or the community.^[11]

¶ Providers and services

Under Pasal 3 energy conservation services may be provided by a business entity, a public service agency (Badan Layanan Umum) or a technical implementation unit (Unit Pelaksana Teknis), and Pasal 4 requires each provider to hold a business licence. The licence standard for energy conservation services is among those set by Permen ESDM 7/2026.^[4:1][12] The services are directed at energy providers, users of energy sources and users of energy, and consist of five activities: investment-grade energy audits, financing of energy efficiency projects, installation, construction, monitoring and supervision of such projects, operation, maintenance and repair of energy installations, and measurement and verification of energy performance.^[4:2]

¶ Investment-grade audit

An investment-grade energy audit (Audit Energi Berstandar Investasi) is a detailed audit that identifies efficiency opportunities that are technically and financially feasible. It must contain at least a work plan, an energy baseline set before any efficiency measure, inspection and measurement, an analysis of energy consumption and cost, and a detailed calculation of the investment an efficiency project requires.^[13] The baseline rests on relevant variables and the historical energy consumption data, and may take account of static factors; the inspection checks the measurement points, calibrated instruments and measurement period and validates the data; and the cost calculation covers the potential savings in energy costs, a cost breakdown and a financial feasibility analysis.^[13:1]

¶ Financing and verification

Pasal 13 provides that energy efficiency projects are financed through an energy saving performance contract (Kontrak Kinerja Penghematan Energi), under which the investment is recovered from the value of the energy saved. Performance must be measured and verified, either by the financing provider if its licence covers verification or by a separate verification provider, and the financier may be backed by third-party risk guarantees; where a guarantee concerns facilities managed by the central or a regional government, the financing follows the applicable law.^[5:1] Installation and operation work must follow engineering standards, meaning statutory rules, Indonesian national standards or international standards, and measurement and verification must be carried out by verifiers holding a competency certificate, who prepare a verification plan before the project and a report after it.^[14]

¶ Business models

Pasal 18 requires each service to rest on an agreement between provider and user that sets out the business model. The regulation names five. Under guaranteed savings the provider guarantees an agreed level of savings over a set period so that the user recovers its investment; under shared savings the two parties divide the reduction in energy costs so that the provider recovers its investment. Under build, operate and transfer the user pays for the provider's construction and operation of project assets, which pass to the user at the end of the payment period, while under build, operate and own the assets stay with the provider. Under energy as a service the user pays for savings delivered as a service, such as cooling, heating, lighting or steam. The parties may also agree another model, and third parties or the financial services industry may support any of them.^[6:1]

¶ Reporting and supervision

A licensed provider must report within 14 working days of receiving its licence, submitting a copy of the licence and technical documents set out in Lampiran I, and must report any expansion of its services within 14 working days of approval, using Lampiran II. It must also submit an annual report on its services to the Minister by 31 December, in the format of Lampiran III, which lists the projects carried out, the investment they required and their potential energy savings. Reports are made through the ministry's information system, or on paper while the system is unavailable.^[7:1] Lampiran I requires an audit provider to employ at least one certified energy auditor and a verification provider at least one certified verifier, while providers of financing, installation and maintenance each need at least one expert with three years' experience in the field.^[15]

The Minister provides guidance through information, consultation and training and certification, and supervises compliance through energy conservation supervisory officials. The only administrative sanction in the regulation is a written warning, imposed on a provider that fails to make the initial, expansion or annual report.^[8:1]

¶ See also

• Permen ESDM 3/2026
• Permen ESDM 50/2017
• Carbon trading and climate regulation in Indonesia

¶ External links

• Permen ESDM No. 1 Tahun 2026 (JDIH BPK)
• CRPG: Energy Conservation Service Businesses: PERMENESDM 1/2026 (crpg.id, 5 July 2026) (free sign-in required on crpg.id)
• CRPG: Indonesia's First Energy Conservation Services Framework: PERMENESDM 1/2026 (crpg.id, 22 April 2026) (free sign-in required on crpg.id)

¶ References