Indonesia’s Cheap Gas Recipients Still Lag on Energy Efficiency

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Ecobiz.asia – Only 41 of 164 Indonesian companies receiving special natural gas prices and consuming more than 4,000 tonnes of oil equivalent (TOE) a year have fully implemented mandatory energy management measures, according to the Ministry of Energy and Mineral Resources (ESDM).

A total of 121 companies have submitted energy-management reports to the government. Companies that have implemented energy conservation measures have recorded combined savings of 2,348 GWh from investments totaling Rp629 billion.

Energy Conservation Director Gigih Udi Atmo presented the figures during Indonesia Sustainable Energy Week (ISEW) 2026 on Thursday (August 20, 2026).

Indonesia had 233 companies receiving the Harga Gas Bumi Tertentu (HGBT), or special gas price, as of the end of 2025. Of these, 164 consumed more than 4,000 TOE annually, placing them above the threshold for mandatory energy management.

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The largest energy savings came from adjustments to operating parameters, which generated 972 GWh of savings with investment of Rp27 billion. The measure accounted for about 41% of total energy savings recorded.

Equipment replacement generated another 874 GWh in savings, requiring Rp242 billion in investment. Maintenance and equipment repairs contributed 276 GWh from Rp254 billion of investment, while equipment modifications generated 30 GWh from Rp17 billion.

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Other measures accounted for 196 GWh in energy savings from Rp87 billion of investment.

The figures indicate that some industrial energy savings can be achieved through operational improvements without requiring large capital expenditure. ESDM calculated the average investment for operating-parameter adjustments at Rp28 per kWh saved, compared with Rp276 per kWh for equipment replacement and Rp921 per kWh for maintenance and repairs.

Companies covered by the HGBT program consumed around 158.8 million MMBtu of natural gas. Energy conservation measures reduced gas consumption by approximately 5.54 million MMBtu, or about 3%.

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Energy-management requirements were strengthened under Government Regulation No. 33/2023. Industrial users consuming at least 4,000 TOE annually are required to appoint an energy manager, prepare an energy-efficiency program, conduct periodic energy audits, implement audit recommendations and report the results to ESDM.

Across Indonesia’s broader energy-management reporting system, 391 companies had submitted online reports by July 2026. Reported energy savings reached 18,221 GWh, equivalent to about 2% of total energy consumption of 882,396 GWh, while estimated emissions reductions reached 4.19 million tonnes of CO2 equivalent. ***

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