What National Energy Plan Governs Indonesia Under PERPRES 22/2017?
1.0 Introduction and Regulatory Context
1.1 Regulatory Background
Peraturan Presiden Republik Indonesia Nomor 22 Tahun 2017 tentang Rencana Umum Energi Nasional (Presidential Regulation Number 22 of 2017 on the National General Energy Plan, hereinafter "PERPRES 22/2017") represents Indonesia's most comprehensive energy planning framework. Enacted on March 2, 2017, and promulgated on March 13, 2017, this regulation operationalizes the constitutional mandate of UU No. 30 Tahun 2007 tentang Energi (Law No. 30 of 2007 on Energy), specifically Articles 12(2) and 17(1), which require the national government to establish a detailed National General Energy Plan (Rencana Umum Energi Nasional, "RUEN").
The regulation consists of seven substantive articles plus two annexes spanning 115 pages. Lampiran I (Annex I) contains the complete RUEN document with detailed modeling, targets, and implementation strategies through 2050. Lampiran II (Annex II) provides the program matrix detailing policies and strategies for national energy management. According to BPK records (Details/68772), PERPRES 22/2017 remains ACTIVE ("Berlaku") as of November 2025, with 26,562 documented accesses, indicating its critical importance to Indonesia's energy sector stakeholders.
1.2 Legislative Hierarchy and Mandate
PERPRES 22/2017 derives its authority from a multi-layered legislative framework:
Constitutional Foundation:
- Pasal 4 ayat (1) UUD 1945: Presidential authority to execute laws
- UU No. 30 Tahun 2007 tentang Energi: Primary energy law mandating RUEN establishment
- PP No. 79 Tahun 2014 tentang Kebijakan Energi Nasional (KEN): National Energy Policy establishing targets for energy mix, elasticity, and electrification
- Perpres No. 1 Tahun 2014: Guidelines for compiling the National General Energy Plan
The regulation was formulated following the Third Plenary Session of the National Energy Council (Dewan Energi Nasional, "DEN") on June 22, 2016, which formally approved the draft RUEN for presidential adoption. This institutional process ensures that RUEN reflects cross-sectoral consensus among energy stakeholders, including ministries, state enterprises, and regional governments.
1.3 Strategic Significance
PERPRES 22/2017 marks a paradigm shift in Indonesia's energy governance. For decades, Indonesia treated energy resources—particularly oil, gas, and coal—primarily as export commodities generating foreign exchange. PERPRES 22/2017 reorients this approach, declaring energy resources as "modal pembangunan nasional" (national development capital) rather than mere export commodities. This philosophical transformation underpins the regulation's ambitious goals:
- Energy self-sufficiency (kemandirian energi): Reducing dependency on imported oil and LPG
- Energy security (ketahanan energi): Ensuring reliable, affordable energy access nationwide
- Renewable energy transition: Achieving 23% renewable energy in the national energy mix by 2025 and 31% by 2050
- Infrastructure development: Building refineries, gas pipelines, power plants, and transmission networks to support economic growth
- Environmental sustainability: Controlling greenhouse gas emissions while meeting development needs
The regulation's 2015-2050 timeframe provides long-term planning stability critical for multi-billion-dollar infrastructure investments, while periodic five-year reviews ensure adaptability to changing technological and economic conditions.
2.0 Key Definitions and Scope
2.1 Statutory Definitions (Pasal 1 - Verbatim Indonesian Text)
PERPRES 22/2017 establishes seven foundational definitions in Pasal 1 that structure the entire regulatory framework:
Pasal 1
"Dalam Peraturan Presiden ini yang dimaksud dengan:
1. Rencana Umum Energi Nasional, yang selanjutnya disingkat RUEN adalah kebijakan Pemerintah Pusat mengenai rencana pengelolaan energi tingkat nasional yang merupakan penjabaran dan rencana pelaksanaan Kebijakan Energi Nasional yang bersifat lintas sektor untuk mencapai sasaran Kebijakan Energi Nasional.
2. Rencana Umum Energi Daerah Provinsi yang selanjutnya disingkat RUED-P adalah kebijakan pemerintah provinsi mengenai rencana pengelolaan energi tingkat provinsi yang merupakan penjabaran dan rencana pelaksanaan RUEN yang bersifat lintas sektor untuk mencapai sasaran RUEN.
3. Kebijakan Energi Nasional, yang selanjutnya disingkat KEN adalah kebijakan pengelolaan energi yang berdasarkan prinsip berkeadilan, berkelanjutan, dan berwawasan lingkungan guna terciptanya kemandirian energi dan ketahanan energi nasional.
4. Pemerintah Pusat adalah Presiden Republik Indonesia yang memegang kekuasaan pemerintahan negara Republik Indonesia yang dibantu oleh Wakil Presiden dan Menteri sebagaimana dimaksud dalam Undang-Undang Dasar Negara Republik Indonesia Tahun 1945.
5. Kementerian adalah kementerian negara yang menyelenggarakan urusan pemerintahan di bidang energi dan sumber daya mineral.
6. Pemerintah Daerah adalah kepala daerah sebagai unsur penyelenggara pemerintahan daerah yang memimpin pelaksanaan urusan pemerintahan yang menjadi kewenangan daerah otonom.
7. Dewan Energi Nasional adalah suatu lembaga bersifat nasional, mandiri, dan tetap, yang bertanggung jawab atas kebijakan energi nasional."
2.2 English Translation and Legal Interpretation
1. National General Energy Plan (RUEN): The central government's policy on national-level energy management, serving as the detailed implementation blueprint for the National Energy Policy (KEN). RUEN is cross-sectoral, coordinating energy planning across transportation, industry, residential, commercial, and other sectors to achieve KEN targets.
2. Provincial Regional Energy Plan (RUED-P): Provincial government policies on provincial-level energy management, derived from and implementing RUEN. Each of Indonesia's 38 provinces must develop RUED-P aligned with national targets while addressing regional energy needs and resources.
3. National Energy Policy (KEN): The overarching energy management policy based on principles of equity (berkeadilan), sustainability (berkelanjutan), and environmental consciousness (berwawasan lingkungan) to achieve energy self-sufficiency and national energy security. KEN, established via PP No. 79/2014, sets binding targets for energy elasticity (≤1.0 by 2025), electrification ratio (≥99.7% by 2025), renewable energy share (≥23% by 2025), and other metrics.
4. Central Government (Pemerintah Pusat): The President of the Republic of Indonesia, assisted by the Vice President and Ministers, holding executive authority under the 1945 Constitution.
5. Ministry (Kementerian): The ministry handling energy and mineral resources affairs, specifically the Ministry of Energy and Mineral Resources (Kementerian Energi dan Sumber Daya Mineral, "KESDM").
6. Regional Government (Pemerintah Daerah): Regional heads (governors, regents, mayors) responsible for implementing autonomous regional governance, including energy management within their jurisdictions.
7. National Energy Council (DEN): A permanent, independent, national-level institution responsible for national energy policy formulation and oversight, chaired by the President with members from key ministries and energy experts.
2.3 Scope and Coverage
PERPRES 22/2017 applies comprehensively across Indonesia's energy sector, covering:
- Primary energy sources: Oil, natural gas, coal, geothermal, hydro, mini/micro-hydro, bioenergy, solar, wind, ocean energy (tidal, wave, thermal gradient)
- Energy transformation: Refineries, power generation, fuel processing
- Final energy consumption sectors: Transportation, industry (fuel and feedstock), residential, commercial, other sectors
- Cross-cutting themes: Energy conservation, efficiency, infrastructure development, institutional frameworks, policy instruments
- Geographic scope: Entire Indonesian archipelago, with provincial-level disaggregation in annexes
- Temporal scope: 2015-2050, with milestone targets for 2025 and 2050
The regulation mandates periodic review every five years or ad hoc when KEN undergoes fundamental changes or when strategic environmental shifts occur (e.g., international energy price shocks, technological breakthroughs, climate commitments under UNFCCC).
3.0 Core Requirements and Provisions
3.1 RUEN Composition and Legal Function (Pasal 2)
Matrix 1: RUEN Structural Components and Mandates
| Component | Content Requirement | Legal Significance | Implementation Timeline |
|---|---|---|---|
| Pendahuluan (Introduction) | Background, legal basis, national energy issues, regulation structure | Establishes policy rationale and legislative intent | Completed upon regulation enactment (2017) |
| Kondisi Energi Nasional (Current Energy Conditions and Future Expectations) | Socio-economic indicators (GDP, population), energy indicators (reserves, production, consumption, mix), environmental indicators (GHG emissions), demand-supply modeling to 2050 | Provides empirical foundation for targets and strategies; modeling projects energy needs under BAU and KEN scenarios | Updated every 5 years through RUEN revision process |
| Visi, Misi, Tujuan, dan Sasaran (Vision, Mission, Goals, Targets) | Vision: Energy self-sufficiency and security; Mission: Cross-sectoral energy management; Goals: Optimal resource utilization, equitable access; Targets: Quantified metrics (elasticity ≤1.0, electrification ≥99.7%, renewable 23%+) | Translates KEN principles into actionable objectives; provides legal benchmarks for compliance assessment | Targets set for 2025, 2030, 2035, 2040, 2045, 2050 |
| Kebijakan dan Strategi Pengelolaan Energi Nasional (Policies and Strategies) | Detailed policies for primary energy supply (oil, gas, coal, renewables), energy transformation (power generation), final energy demand (sectoral), conservation/efficiency, institutions, and policy instruments | Core operational content; specifies actions, responsible agencies, legal instruments required | Ongoing 2017-2050; Lampiran II matrix assigns agency responsibilities and timelines |
| Penutup (Conclusion) | Summary, commitment to implementation, review mechanism | Affirms political will and administrative accountability | Continuous through 2050 |
Pasal 2 Ayat (2): RUEN is formalized in Lampiran I (Annex I), which becomes an "inseparable part" (bagian tidak terpisahkan) of PERPRES 22/2017, giving it full legal force.
Pasal 2 Ayat (3): The policy-strategy matrix in Lampiran II provides granular program details, also constituting an "inseparable part" of the regulation.
3.2 RUEN Legal Functions: Reference and Guidance (Pasal 3)
Matrix 2: RUEN Functions and Binding Effects
| Function Type | Pasal 3 Ayat | Scope | Legal Effect | Affected Parties |
|---|---|---|---|---|
| Reference (Rujukan) for Development Planning | Pasal 3(1)(a) | Compilation of national and regional development planning documents | Mandatory consideration: National and regional development plans (RPJMN/RPJMD) must align with RUEN energy targets | National Development Planning Agency (Bappenas), Regional Planning Boards (Bappeda) |
| Reference (Rujukan) for Electricity Planning | Pasal 3(1)(b) | Preparation of National Electricity General Plan (RUKN) and Electricity Supply Business Plan (RUPTL) | Binding alignment: RUKN (by Ministry of ESDM) and RUPTL (by PLN and other utilities) must comply with RUEN power generation targets and renewable energy share | Ministry of ESDM, PLN (state electricity company), IPPs (independent power producers) |
| Reference (Rujukan) for Budget Preparation | Pasal 3(1)(c) | National and regional budget allocation (APBN/APBD) by ministries, agencies, and regional governments | Budget prioritization: APBN/APBD must prioritize programs supporting RUEN implementation (e.g., renewable energy subsidies, infrastructure funding) | Ministry of Finance, all ministries/agencies, regional governments |
| Guidance (Pedoman) for Strategic Plans | Pasal 3(2)(a) | Preparation of Renstra (strategic plans) by ministries and non-ministerial agencies | Strategic alignment: Ministries (ESDM, Industry, Transportation, etc.) must incorporate RUEN targets into 5-year strategic plans | All ministries and agencies with energy-related mandates |
| Guidance (Pedoman) for Provincial Energy Plans | Pasal 3(2)(b) | Provincial governments compiling RUED-P | Provincial compliance: Each province must develop RUED-P disaggregating national targets to regional context (resources, demand, infrastructure) | 38 provincial governments |
| Guidance (Pedoman) for Cross-Sectoral Coordination | Pasal 3(2)(c) | Ministry of ESDM and regional governments coordinating cross-sectoral energy planning | Coordination mandate: Regular coordination mechanisms (e.g., inter-ministerial meetings, provincial energy forums) to ensure policy coherence | Ministry of ESDM, regional governments, DEN |
| Guidance (Pedoman) for Public Participation | Pasal 3(2)(d) | Community involvement in national energy development | Public engagement: Citizens, civil society, business entities entitled to participate in energy planning and implementation | General public, NGOs, private sector |
Legal Distinction: "Rujukan" (reference) imposes stronger compliance obligations on government entities preparing specific planning documents (development plans, electricity plans, budgets). "Pedoman" (guidance) provides directional instructions for broader strategic alignment and stakeholder engagement, allowing more interpretive flexibility.
3.3 Vision, Mission, Goals, and Targets
The RUEN document (Lampiran I, Section III) articulates Indonesia's energy future:
Vision: "Terwujudnya kemandirian energi dan ketahanan energi nasional untuk mendukung pembangunan nasional berkelanjutan" (Realization of energy self-sufficiency and national energy security to support sustainable national development).
Mission: Cross-sectoral energy management optimizing domestic resources, ensuring equitable access, promoting efficiency, and maintaining environmental quality.
Goals:
1. Optimal, integrated, and sustainable energy resource management
2. Equitable and affordable energy access for all Indonesians
3. Development of domestic energy technology, industry, and services
4. Job creation and controlled climate change impacts
Quantified Targets (Sasaran):
Matrix 3: KEN/RUEN Targets 2015-2050
| Indicator | 2015 Baseline | 2025 Target | 2050 Target | Measurement Unit |
|---|---|---|---|---|
| Energy Elasticity | >1.0 (inefficient) | ≤1.0 | <1.0 | Ratio of energy consumption growth to GDP growth |
| Primary Energy Mix - Oil | 40% | 25% | 20% | % of total primary energy supply |
| Primary Energy Mix - Natural Gas | 19% | 22% | 24% | % of total primary energy supply |
| Primary Energy Mix - Coal | 31% | 30% | 25% | % of total primary energy supply |
| Primary Energy Mix - Renewables (EBT) | 10% | 23% | 31% | % of total primary energy supply |
| Electrification Ratio | 88.5% | ≥99.7% (universal) | 100% | % of households with electricity access |
| Electricity Consumption Per Capita | 910 kWh/capita | ~2,500 kWh/capita | ~7,000 kWh/capita | kWh per capita per year |
| Installed Power Generation Capacity | 55 GW | ~115 GW | ~430 GW | Gigawatts |
| LPG Household Usage | 75% | 90% | 100% | % of households using LPG (vs. biomass/kerosene) |
| GHG Emissions from Energy Sector | ~453 Mt CO2e (2015) | Controlled growth | Aligned with INDC commitments | Million tons CO2 equivalent |
These targets legally bind government agencies in strategic planning, budgeting, and program implementation per Pasal 3.
4.0 Implementation Framework
4.1 Institutional Roles and Responsibilities (Pasal 4, Pasal 5)
Pasal 4: Socialization and Capacity Building
The National Energy Council (DEN) and Ministry of ESDM jointly perform:
- Socialization (Sosialisasi): Disseminating RUEN to central ministries, regional governments, state enterprises, private sector, and civil society to ensure broad awareness and buy-in.
- Guidance for RUED-P Compilation (Pembinaan Penyusunan RUED-P): Providing technical assistance, templates, modeling tools, and capacity building to provincial governments drafting RUED-P.
Legal Implication: Provinces lacking RUED-P risk budget disqualification (Pasal 3(1)(c)) and misalignment with national targets, potentially jeopardizing energy infrastructure projects.
Pasal 5: Monitoring and Oversight
Pasal 5 Ayat (1): DEN conducts oversight (pengawasan) of RUEN implementation and cross-sectoral energy policies.
Pasal 5 Ayat (2): Oversight is coordinated with relevant central and regional agencies and stakeholders, respecting statutory frameworks.
Pasal 5 Ayat (3): Monitoring results are discussed in DEN Member Sessions (Sidang Anggota) and reported to the DEN Chair (President) or discussed in DEN Plenary Sessions (Sidang Paripurna).
Pasal 5 Ayat (4): DEN monitors follow-up actions on oversight recommendations regarding KEN, RUEN, and cross-sectoral energy policies.
Legal Implication: DEN possesses statutory authority to review ministry performance, identify implementation gaps, and recommend corrective actions. While DEN cannot directly sanction non-compliant entities, its recommendations to the President carry significant political and administrative weight, often triggering ministerial reshuffles or policy adjustments.
4.2 Primary Energy Supply Programs
The RUEN (Lampiran I, Section IV) prescribes detailed supply-side programs:
Matrix 4: Primary Energy Supply Strategies and Key Programs (2017-2050)
| Energy Source | Current Issues | Policy Strategy | Key Programs | Responsible Agencies | Legal Instruments Required |
|---|---|---|---|---|---|
| Oil (Minyak Bumi) | Production decline (786K BOPD in 2015 from 1.6M BOPD in 1995); 60% import dependency for crude/refined products; limited refining capacity (681K BOPD) | Increase domestic production; optimize Enhanced Oil Recovery (EOR); develop new refineries; reduce export of crude oil | - EOR implementation in 66 mature fields - Exploration intensification in frontier basins (petroleum plays) - Refinery Development Master Plan (RDMP): expand capacity to ~2M BOPD by 2025 - Crude oil export reduction, prioritize domestic refining |
Ministry of ESDM (upstream regulator), SKK Migas (upstream contractor manager), Pertamina (state oil company), private contractors | - Revisions to PSC (Production Sharing Contract) terms to incentivize EOR - Tax/fiscal incentives for refinery construction - Export quota regulations |
| Natural Gas (Gas Bumi) | Export commitments consume ~50% of production (long-term LNG contracts); limited domestic pipeline infrastructure; gas price uncompetitive vs. coal | Prioritize domestic gas allocation; build integrated gas pipeline network (Sumatera-Java-Kalimantan); expand LPG production; reduce gas export gradually | - Gas pipeline network development (5,000+ km by 2030) - LNG receiving terminals in gas-deficit regions - City gas (gas kota) network expansion to 100+ cities - Domestic Market Obligation (DMO) enforcement for gas producers - LPG plant construction to reduce LPG imports |
Ministry of ESDM, PGN (state gas company), regional governments, private gas distributors | - DMO regulations with enforceable penalties - Gas pricing policy balancing affordability and producer viability - Land acquisition for pipeline rights-of-way |
| Coal (Batubara) | 79% of production (365.8M tons of 461.6M tons in 2015) exported; environmental concerns (GHG emissions, mining degradation) | Reduce coal export; increase domestic utilization for power generation; develop coal gasification/liquefaction; implement clean coal technology | - Domestic coal allocation for power plants (PLTU) - Coal gasification pilot projects (syngas, DME production) - Ultra-supercritical (USC) coal power plants for efficiency - Progressive coal export restrictions (quota reduction) - Post-mining land reclamation enforcement |
Ministry of ESDM, PLN, coal mining companies (Adaro, Bumi Resources, etc.), Ministry of Environment and Forestry | - Coal export quota regulations (phased reduction) - Clean coal technology standards (USC, carbon capture) - Environmental restoration bonds for miners |
| Renewables (EBT) - Geothermal | Abundant potential (~29 GW) but slow development (1.4 GW installed in 2015); high upfront costs; complex permitting (forestry, land) | Accelerate geothermal exploration and development; streamline permits; provide fiscal incentives | - Geothermal drilling (100+ wells/year) - Feed-in Tariff (FiT) for geothermal power - Government-funded exploration risk mitigation - Target: 7.2 GW by 2025 |
Ministry of ESDM, PLN, geothermal developers (Pertamina Geothermal Energy, Chevron, Star Energy), Ministry of Environment and Forestry | - Permen ESDM on geothermal FiT - Fast-track forestry permits for geothermal in conservation areas - Sovereign guarantees for geothermal PPAs |
| Renewables (EBT) - Hydro | Large untapped potential (~75 GW); environmental/social concerns (resettlement, ecosystem impacts) | Develop large hydro projects; promote mini/micro-hydro in remote areas | - Large hydro projects (e.g., 1,000+ MW plants in Kalimantan, Papua) - Mini-hydro (<10 MW) for rural electrification - Target: 18 GW by 2025 |
Ministry of ESDM, PLN, Ministry of Public Works, regional governments | - Environmental Impact Assessment (AMDAL) streamlining - Community benefit-sharing regulations - FiT for mini/micro-hydro |
| Renewables (EBT) - Bioenergy | Biomass resources (palm oil waste, forestry residues, MSW) underutilized; technology gaps | Develop biomass power plants; promote bioethanol/biodiesel blending | - Palm Oil Mill Effluent (POME) biogas plants (1,000+ MW potential) - Biodiesel (B30, B40) blending mandate - Bioethanol pilot programs - MSW-to-energy in urban areas |
Ministry of ESDM, Ministry of Agriculture, plantation companies, PLN | - Biofuel blending mandates (Perpres) - FiT for biomass power - Standards for POME biogas technology |
| Renewables (EBT) - Solar | High potential (4.8 kWh/m²/day average insolation); declining PV costs | Large-scale solar farms; rooftop solar promotion; off-grid solar for remote islands | - Utility-scale solar farms (100+ MW projects) - Rooftop solar net metering programs - Solar home systems (SHS) for non-electrified households - Target: 6.5 GW by 2025 |
Ministry of ESDM, PLN, private solar developers, regional governments | - Net metering regulations - Solar FiT/auction mechanisms - Tax exemptions for solar equipment imports |
| Renewables (EBT) - Wind | Moderate potential (~60 GW, concentrated in eastern Indonesia, Sulawesi) | Develop pilot wind farms; conduct detailed wind mapping | - Wind farm projects in high-potential areas (e.g., Sulawesi, NTT, Jeneponto) - Target: 1.8 GW by 2025 |
Ministry of ESDM, PLN, private wind developers | - Wind FiT regulations - Land use permits for wind farms |
| Renewables (EBT) - Ocean Energy | Emerging technology (tidal, wave, OTEC); high potential but immature | Research, development, and demonstration (RD&D) projects | - Pilot tidal/wave energy projects in strategic straits - International technology partnerships |
Ministry of ESDM, research institutions (BPPT, universities) | - RD&D funding allocations - Technology transfer agreements |
4.3 Energy Transformation: Power Generation
The RUEN projects massive power generation expansion to meet electrification and economic growth:
- 2015: 55 GW installed capacity → 2025: ~115 GW → 2050: ~430 GW
- Renewable share in power generation: 2015: ~13% → 2025: ~23% → 2050: ~31%
Key Transformation Programs:
1. 35,000 MW Power Program (2015-2019): Accelerated power plant construction (subsequently extended beyond 2019 due to implementation challenges)
2. Transmission network expansion: High-voltage (500 kV) Java-Sumatra interconnection; inter-island submarine cables (Java-Bali-NTB-NTT; Sumatra-Bangka-Belitung)
3. Coal power phase-out planning: No new coal plants post-2030; existing plants retrofitted with carbon capture or retired
4. Gas-fired power priority: Combined Cycle Gas Turbine (CCGT) plants for baseload and peaking power
5. Renewable integration: Grid stability measures (battery storage, smart grids) to accommodate variable solar/wind generation
4.4 Final Energy Demand Management
RUEN addresses demand-side management across sectors:
Transportation Sector:
- Fuel switching: Promote Compressed Natural Gas (CNG)/LNG for public transport and freight; bioethanol (E10, E20) and biodiesel (B30, B40) blending
- Electric vehicles (EVs): Incentivize EV adoption; build charging infrastructure
- Public transit: Expand Mass Rapid Transit (MRT), Light Rail Transit (LRT) in major cities to reduce private vehicle use
Industrial Sector:
- Gas allocation: Prioritize gas supply for fertilizer, petrochemical, steel, ceramics industries to replace diesel/coal
- Energy efficiency standards: Mandatory energy audits for large industries; MEPS (Minimum Energy Performance Standards) for industrial equipment
- Renewable integration: Solar thermal, biomass for industrial process heat
Residential Sector:
- LPG universalization: Achieve 100% LPG usage by 2050 (from 75% in 2015), eliminating biomass/kerosene
- Efficient appliances: Phase out incandescent bulbs; promote LED lighting, energy-efficient refrigerators/air conditioners
- Rooftop solar: Incentivize residential solar PV installations
Commercial Sector:
- Building codes: Green building standards for new commercial developments
- Energy management systems (EMS): Smart meters, automated HVAC controls in offices, hotels, malls
Conservation and Efficiency:
- Target: Reduce energy intensity (energy consumption per unit GDP) by 1% annually
- Instruments: Energy labels for appliances, vehicles; Energy Service Companies (ESCO) to finance efficiency retrofits; public awareness campaigns
4.5 Periodic Review and Revision (Pasal 6)
Pasal 6 Ayat (1): RUEN may be reviewed and updated periodically every 5 years or ad hoc if:
- Pasal 6(1)(a): KEN undergoes fundamental changes (requiring PP amendment)
- Pasal 6(1)(b): Strategic environmental changes occur, such as shifts in national/regional/international energy planning indicators (e.g., Paris Agreement commitments, oil price collapse, breakthrough energy technologies)
Pasal 6 Ayat (2): Proposed RUEN revisions are decided in DEN Plenary Sessions (Sidang Paripurna), ensuring high-level political approval.
Legal Implication: RUEN's five-year review cycle aligns with Indonesia's National Medium-Term Development Plan (RPJMN) cycle, facilitating policy coherence. The ad hoc revision clause provides flexibility to respond to unforeseen events (e.g., COVID-19 pandemic's impact on energy demand, global energy transitions accelerating beyond projections).
5.0 Practical Implications
5.1 For Government Agencies
Ministry of Energy and Mineral Resources (KESDM):
- Lead implementing agency: Responsible for translating RUEN targets into sector-specific regulations (Permen ESDM) covering upstream oil/gas, mining, electricity, renewables
- Licensing and oversight: Issue permits for energy projects (oil/gas blocks, mining concessions, power plants) aligned with RUEN allocations
- Monitoring: Track annual progress on KEN/RUEN targets; report to DEN and Parliament (DPR)
Ministry of Finance:
- Fiscal policy alignment: Redirect subsidies from fossil fuels to renewable energy (FiT subsidies, geothermal exploration funding)
- Budget prioritization: Allocate APBN for energy infrastructure (gas pipelines, transmission lines) per Pasal 3(1)(c)
- Incentive design: Tax holidays for renewable energy investors; import duty exemptions for solar panels, wind turbines
National Development Planning Agency (Bappenas):
- Integration into RPJMN: Embed RUEN energy targets into 5-year and 20-year national development plans
- Provincial planning guidance: Ensure RPJMD (regional medium-term development plans) incorporate RUED-P energy objectives
Provincial Governments:
- RUED-P formulation: Develop provincial energy plans disaggregating national targets (e.g., West Java must specify contribution to 23% renewable target through local geothermal, solar, biomass projects)
- Permitting coordination: Facilitate land acquisition, environmental permits for energy projects within provincial jurisdiction
- Public engagement: Conduct provincial energy forums with local stakeholders (regional parliaments, civil society, business associations)
PLN (State Electricity Company):
- RUPTL alignment: Ensure 10-year Electricity Supply Business Plan adheres to RUEN's renewable energy share, electrification ratio, and capacity addition targets
- Grid development: Invest in transmission/distribution infrastructure to support universal electrification by 2025
- Renewable procurement: Conduct competitive auctions for solar, wind, hydro projects; negotiate PPAs (Power Purchase Agreements) aligned with FiT regulations
National Energy Council (DEN):
- Oversight: Conduct semi-annual reviews of RUEN implementation; issue public reports on target achievement
- Policy coordination: Convene inter-ministerial meetings to resolve policy conflicts (e.g., Ministry of Forestry permits delaying geothermal projects)
- Revision proposals: Initiate RUEN updates when strategic shifts occur (e.g., net-zero emissions pledges necessitating faster coal phase-out)
5.2 For Private Sector
Oil and Gas Contractors (KKS Holders):
- Production obligations: Comply with DMO (Domestic Market Obligation) requiring allocation of gas production to domestic markets at regulated prices
- EOR implementation: Invest in Enhanced Oil Recovery technologies to meet RUEN's production stabilization targets (maintaining ~800K BOPD)
- Exploration commitments: Fulfill work program commitments in PSCs to discover new reserves, supporting RRR (Reserve Replacement Ratio) targets
Coal Mining Companies:
- Domestic allocation: Fulfill domestic coal supply obligations to PLN and industries as RUEN phases down coal exports
- Environmental compliance: Implement reclamation plans for mined land; adopt clean coal technologies (coal washing, USC boilers) to reduce emissions
- Business model adaptation: Diversify into coal gasification, DME production as export markets decline
Renewable Energy Developers:
- Opportunity landscape: RUEN's 23% renewable target (2025) and 31% target (2050) create massive market for geothermal (7.2 GW), hydro (18 GW), solar (6.5 GW), wind (1.8 GW), bioenergy projects
- FiT negotiations: Engage PLN on Power Purchase Agreements under Permen ESDM FiT frameworks
- Financing strategies: Leverage RUEN's legal certainty to secure project financing from banks, development finance institutions (IFC, ADB, Green Climate Fund)
Industrial Consumers:
- Gas access: Participate in gas allocation programs prioritizing industries (fertilizer, petrochemicals, steel) over exports
- Energy efficiency mandates: Conduct mandatory energy audits (per RUEN conservation programs); implement efficiency measures to reduce costs and comply with intensity reduction targets
- Renewable sourcing: Procure electricity from renewable sources (rooftop solar, captive biomass plants) to meet corporate sustainability goals and prepare for potential carbon pricing
Technology Suppliers:
- Local content requirements: Anticipate regulations mandating local manufacturing of renewable energy equipment (solar PV modules, wind turbine components) to maximize RUEN's job creation goals
- Partnerships: Collaborate with Indonesian manufacturers, research institutions (BPPT, ITB, UGM) to transfer technology and build domestic capabilities
5.3 For Civil Society and Communities
Energy Access Advocacy:
- Monitoring electrification: Track progress toward 99.7% electrification ratio (2025), holding government accountable for reaching remote, underserved communities
- Affordability concerns: Advocate for targeted subsidies ensuring low-income households afford LPG, electricity despite subsidy reforms
Environmental Justice:
- Renewable energy promotion: Support community-scale renewable projects (mini-hydro, solar cooperatives) aligned with RUEN's EBT targets
- Coal phase-out: Pressure government to accelerate coal power retirement, leveraging RUEN's environmental sustainability principle
- Just transition: Demand retraining, social safety nets for coal miners, coal power workers displaced by energy transition
Participation Rights (Pasal 3(2)(d)):
- RUED-P consultations: Engage in provincial energy planning processes, ensuring local energy needs and environmental concerns inform RUED-P
- Project-level engagement: Participate in AMDAL (environmental impact assessment) processes for energy projects, ensuring Free Prior Informed Consent (FPIC) for affected communities
Transparency and Accountability:
- Access to information: Request RUEN implementation data from KESDM, DEN under UU No. 14 Tahun 2008 tentang Keterbukaan Informasi Publik (Public Information Openness Law)
- Litigation: Challenge energy projects violating RUEN mandates (e.g., new coal plants in forestry areas inconsistent with renewable targets) through administrative courts (PTUN)
5.4 Legal Risks and Compliance Challenges
For Government:
- Target non-achievement: Failure to meet KEN/RUEN targets (e.g., 23% renewable by 2025) may trigger parliamentary investigations, public criticism, and budget scrutiny
- Inter-agency conflicts: Coordination gaps between KESDM, Ministry of Forestry (geothermal permits), Ministry of Public Works (land for pipelines) delay projects
- Fiscal constraints: Insufficient APBN allocations for infrastructure (pipelines, transmission) hinder RUEN implementation
For Private Sector:
- Contractual disputes: PSC contractors may contest DMO requirements as breaching sanctity of contracts, leading to arbitration
- Stranded assets: Coal mining companies face stranded asset risks as export quotas tighten and domestic coal demand plateaus post-2030
- Permitting delays: Renewable energy developers experience project delays due to slow environmental, forestry, land permits, jeopardizing FiT contract timelines
For Communities:
- Displacement: Large hydro, geothermal, pipeline projects may displace communities if FPIC and fair compensation mechanisms inadequate
- Environmental degradation: Mining, pipeline construction damage ecosystems if RUEN's environmental sustainability principle not enforced
5.5 Comparative Perspective: RUEN in Regional Context
RUEN positions Indonesia as a regional leader in energy planning:
ASEAN Comparisons:
- Thailand: Integrated Energy Blueprint (2015-2036) targets 30% renewable energy by 2036, comparable to Indonesia's 31% by 2050, but Thailand's shorter timeline reflects smaller scale and centralized grid
- Vietnam: Power Development Plan VIII (2021-2030) aims for 27% renewable by 2030, faster than Indonesia due to aggressive solar/wind FiT policies
- Philippines: Energy Plan 2012-2030 targets 35% renewable by 2030, benefiting from abundant geothermal (2nd largest globally after USA)
- Malaysia: National Energy Policy 2025 focuses on gas transition and energy efficiency, less ambitious on renewables (~20% target) compared to Indonesia
Indonesia's Unique Challenges:
- Archipelagic geography: 17,000+ islands complicate transmission integration; RUEN addresses via submarine cables, off-grid renewables
- Fossil fuel endowment paradox: Rich coal/gas reserves create political economy obstacles to renewable transition; RUEN navigates by emphasizing domestic utilization over exports, not immediate fossil fuel exit
- Population scale: 270+ million people require massive power capacity additions (~400 GW by 2050), largest in Southeast Asia
5.6 Climate Change and International Commitments
RUEN aligns with Indonesia's climate pledges:
Nationally Determined Contribution (NDC) under Paris Agreement:
- Unconditional target: 29% GHG emissions reduction by 2030 (vs. BAU)
- Conditional target (with international support): 41% reduction by 2030
- Energy sector role: RUEN's renewable energy expansion (23% by 2025, 31% by 2050) and efficiency measures (elasticity <1.0) contribute significantly to NDC achievement
RUEN-NDC Integration:
- Emission modeling: RUEN Lampiran I projects energy sector GHG emissions under KEN scenario remaining below 1,300 Mt CO2e by 2050, compared to BAU scenario exceeding 2,000 Mt CO2e
- Co-benefits: RUEN's energy access goals (electrification, LPG universalization) improve public health by reducing indoor air pollution from biomass burning, complementing climate mitigation
Long-Term Strategy for Low Carbon Development (LTS-LCCR 2050):
- Indonesia's LTS, submitted to UNFCCC in 2021, envisions net-zero emissions by 2060 or sooner; RUEN's 2050 endpoint (31% renewables) positions as interim milestone toward deeper decarbonization post-2050
- Policy coherence imperative: Future RUEN revisions (per Pasal 6) must align with evolving climate commitments (e.g., potential NDC enhancement in 2025, net-zero target advancement)
5.7 Future Outlook and Emerging Issues
Technology Disruptions:
- Battery storage: Declining costs of lithium-ion, flow batteries may accelerate solar/wind integration beyond RUEN projections; revisions should incorporate grid-scale storage targets
- Green hydrogen: Emerging as potential energy vector; Indonesia's renewable potential (hydro, geothermal, solar) enables green hydrogen production for export and domestic industry decarbonization
- Carbon capture and storage (CCS): If CCS becomes economically viable, may extend coal power plant lifespan, requiring RUEN recalibration
Geopolitical Shifts:
- Global energy transition pace: If major economies (EU, USA, China) accelerate coal phase-out, demand for Indonesian coal exports may collapse faster than RUEN anticipates, necessitating expedited domestic economic diversification
- LNG market dynamics: Potential LNG oversupply from Qatar, USA, Russia could depress prices, affecting Indonesia's gas export revenues and influencing domestic gas pricing policies
Financing Gaps:
- Investment needs: RUEN implementation estimated to require US$ 400+ billion through 2050 for infrastructure (refineries, pipelines, power plants, transmission); mobilizing private capital via bankable projects critical
- Just transition financing: Phasing down coal exports and power may displace 100,000+ workers; securing international climate finance (e.g., Just Energy Transition Partnership) essential for social safety nets
Policy Reforms Required:
- Electricity market liberalization: Current PLN monopoly may hinder efficient renewable energy procurement; RUEN's success may require competitive retail markets, allowing consumers to choose renewable suppliers
- Carbon pricing: Implementing carbon tax or emissions trading system (aligned with UU No. 7 Tahun 2021 tentang Harmonisasi Peraturan Perpajakan) would internalize environmental costs, accelerating RUEN's renewable transition
- Land use planning: Resolving forestry, spatial planning conflicts delaying geothermal, hydro projects requires streamlined cross-ministerial coordination, potentially via omnibus regulations
Conclusion
PERPRES 22/2017 on the National General Energy Plan (RUEN) represents Indonesia's most comprehensive and legally binding energy policy framework, charting a 35-year roadmap (2015-2050) toward energy self-sufficiency, security, and sustainability. By redefining energy resources as "national development capital" rather than mere export commodities, the regulation fundamentally reorients Indonesia's energy governance to prioritize domestic value creation, equitable access, and environmental stewardship.
The regulation's legal architecture—comprising seven substantive articles, detailed definitions (Pasal 1), mandatory functions (Pasal 3), institutional responsibilities (Pasal 4-5), and periodic review mechanisms (Pasal 6)—creates binding obligations for government agencies, guidance for private sector investments, and participation rights for civil society. RUEN's ambitious targets—23% renewable energy by 2025, universal electrification by 2025, energy elasticity ≤1.0—translate abstract policy goals into measurable outcomes, enabling accountability and progress tracking.
For legal practitioners, energy sector stakeholders, and policymakers, understanding PERPRES 22/2017 is essential to navigating Indonesia's evolving energy landscape. Compliance with RUEN mandates—whether in RPJMN formulation, APBN allocation, RUPTL preparation, or RUED-P development—ensures legal alignment and maximizes access to government support, financing, and market opportunities. Conversely, neglecting RUEN's requirements risks regulatory penalties, budget disqualification, and competitive disadvantage as Indonesia transitions from fossil fuel dependence to a diversified, renewable-powered economy.
As Indonesia approaches the 2025 milestone—the first major checkpoint for RUEN targets—rigorous monitoring, transparent reporting, and adaptive policy revisions will determine whether the regulation fulfills its transformative promise or requires recalibration. The five-year review cycle (Pasal 6) provides institutional flexibility to incorporate technological breakthroughs (battery storage, green hydrogen), geopolitical shifts (global coal demand collapse), and enhanced climate ambitions (net-zero commitments), ensuring RUEN remains relevant and effective through mid-century.
Ultimately, PERPRES 22/2017 is not merely a technical planning document but a legal embodiment of Indonesia's development aspirations—balancing economic growth with environmental sustainability, leveraging abundant natural resources for national prosperity, and ensuring every Indonesian household, from Sabang to Merauke, enjoys reliable, affordable, and clean energy. Its successful implementation will define Indonesia's energy future and contribute meaningfully to global climate action.
Official Source: PERPRES No. 22 Tahun 2017 - BPK Database
Primary Legislation: Peraturan Presiden Republik Indonesia Nomor 22 Tahun 2017 tentang Rencana Umum Energi Nasional (Presidential Regulation No. 22 of 2017 on the National General Energy Plan)
Status: ACTIVE (Berlaku) as of November 26, 2025
Annexes Available:
- Lampiran I - RUEN Document (115 pages)
- Lampiran II - Program Matrix
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