&nbsp;
On June 16, 2023, the Indonesian Government introduced a landmark change in the energy sector through Government Regulation Number 33 of 2023 on Energy Conservation (&ldquo;GR 33/2023&rdquo;), supplanting the previous regulation, Government Regulation Number 70 of 2009 (&ldquo;GR 70/2009&rdquo;). This new regulation signifies a paradigm shift in energy conservation efforts, imposing updated obligations on both energy users and suppliers. One of the pivotal alterations is the introduction of the "Energy Management" program, compelling specific industries to actively participate in energy conservation initiatives. These measures encompass a spectrum of activities, including energy conservation training, certification processes, and rigorous energy audits. Additionally, GR 33/2023 underscores the government's proactive role, offering financial support to bolster energy conservation endeavors, demonstrating a firm commitment to sustainable energy practices in the country
<div>
The Energy Management program shall be implemented through:
<ul class="list-decimal pl-4">
<li>appointment of energy manager;</li>
<li>preparation of energy efficiency program;</li>
<li>implementation of periodic energy audits; and</li>
<li>implementation of recommendations of the result of an energy audit.</li>
</ul>
</div>
The preparation of an energy efficiency program must include details about the planned actions, the types and amounts of energy used, the use of energy-efficient devices, measures taken to enhance energy efficiency, the quantity of products or services, and the energy performance.
<h2 id="doc1">A. Energy Conservation in Energy Utilization</h2>
According to GR 33/2023, certain business sectors (based on specific energy consumption criteria) are obliged to implement and report their Energy Management implementation to the Ministry of Energy and Mineral Resources (&ldquo;MoEMR&rdquo;) every year. For businesses not falling within this category, although it's not mandatory, there is a strong recommendation to embrace Energy Management practices.
The business sectors that are obliged to implement and report their Energy Management are:
<ol>
<li>Energy Providers (e.g., power plants) who utilize Energy Sources and/or Energy greater than or equal to 6,000 (six thousand) equivalents to tons of oil per year</li>
<li>Transportation sector that utilizes Energy Sources and/or Energy greater than or equal to 4,000 (four thousand) equivalents to tons of oil per year</li>
<li>Industrial sector that utilizes Energy Sources and/or Energy greater than or equal to 4,000 (four thousand) equivalents to tons of oil per year</li>
<li>Building sector (e.g., office building management, shopping centers, education centers, hotels, apartments, and/or hospitals) that utilizes Energy Sources and/or Energy greater than or equal to 500 (five hundred) equivalents to tons of oil per year</li>
</ol>
Please take note that GR 33/2023 specifies that the requirement to carry out the aforementioned Energy Management activities will be enforced within a period of 12 months from its enactment, commencing on June 16, 2024.
<h2>B. Various Efforts for Energy Conservation</h2>
GR 33/2023 also regulates the subsequent activities concerning energy preservation:
<ol class="list-decimal pl-4">
<li>Energy Performance Standards and Energy-Saving Labels
Energy-efficient and/or energy-saving labels will be granted as evidence that a product has fulfilled energy performance standards, which will be affixed by the producers/importers. Energy-efficient technologies must comply with the Domestic Component Levels (Tingkat Komponen Dalam Negeri, &ldquo;TKDN&rdquo;)
</li>
<li>Financing
The government will cooperate with the Indonesian Central Bank (Bank Indonesia, &ldquo;BI&rdquo;) and the Financial Services Authority (Otoritas Jasa Keuangan, &ldquo;OJK&rdquo;) to give financial support for energy conservation.
</li>
<li>Development of Energy Conservation Services Businesses
Encouragement is given to businesses engaged in energy conservation services to enhance their support for energy preservation. This support encompasses:
<ol class="pl-5" style="list-style-type: lower-alpha;">
<li>Investment Grade Energy Audit;</li>
<li>Financing of Energy Efficiency Projects;</li>
<li>construction, development, and/or monitoring of projects related to Energy Efficiency Projects;</li>
<li>operation, maintenance, and reparations of energy installations; and/or</li>
<li>measuring and verification of energy performance.</li>
</ol>
</li>
</ol>
<a href="#doc1">
<h2>C. Facilities, Incentives, and Disincentives</h2>
</a>
GR 33/2023 provides a comprehensive framework to assist energy providers, users, producers, and importers in their energy conservation efforts. This support encompasses the provision of information, consultation services, and facilitated financial access.
Businesses actively engaged in energy conservation efforts will receive incentives, including favorable taxation policies and official recognition certificates issued by the government. Conversely, companies failing to implement Energy Management measures may face formal written warnings, publication in mass media, and/or the potential revocation of incentives as disciplinary actions.
<h3>Conclusion</h3>
GR 33/2023 brings significant changes to Indonesia's energy sector, focusing on energy conservation. It introduces the "Energy Management" program, requiring specific industries to participate. These sectors must appoint energy managers, develop energy efficiency plans, conduct regular audits, and implement audit recommendations. GR 33/2023 also establishes Energy Performance Standards and Energy-Saving Labels for products, encourages financial support through collaborations with financial institutions, and provides incentives like tax benefits and government recognition for businesses actively conserving energy.
For non-compliant companies, there are penalties such as warnings and public exposure. Overall, GR 33/2023 aims to promote sustainable energy practices and accountability in Indonesia.

GR 33/2023 brings significant changes to Indonesia's energy sector, focusing on energy conservation. It introduces the "Energy Management" program, requiring specific industries to participate. These sectors must appoint energy managers, develop energy efficiency plans, conduct regular audits, and implement audit recommendations. 
    GR 33/2023 also establishes Energy Performance Standards and Energy-Saving Labels for products, encourages financial support through collaborations with financial institutions, and provides incentives like tax benefits and government recognition for businesses actively conserving energy.

Indonesia Drives Energy Conservation to Empower Sustainability

On August 22, 2023, the Minister of Law and Human Rights (&ldquo;MoLHR&rdquo;) issued Regulation No. 22 of 2023 on Visas and Stay Permits ("MoLHR Reg 22/2023"). MoLHR Reg 22/2023 is issued following the enactment of Government Regulation No. 31 of 2013 (as amended), which is itself an implementing regulation of Law No. 6 of 2011 on Immigration.
MoLHR Reg 22/2023 serves as the legal foundation for various purposes, including the implementation of the Golden Visa for foreign investors, aiming to promote foreign investments and contribute to the development of the national economy.
The Golden Visa, defined under MoLHR Reg 22/2023, comprises a limited stay visa, a limited stay permit, a permanent stay permit, and a re-entry permit. It is valid for up to 5 (five) or 10 (ten) years and is granted to foreigners for purposes such as capital investment, family unification, repatriation, and a foreigner who has a second home in Indonesia.
In the following discussion, we will explore the main characteristics of the Golden Visa for the purpose of capital investment.
Capital Investment Golden Visa
Golden Visa for capital investment activities may be granted to:
<ol class="list-decimal pl-4">
<li>foreign individuals intending to establish a company in Indonesia;</li>
<li>foreign individuals who do not intend to establish a company in Indonesia; and</li>
<li>foreign individuals who are prospective members of Boards of Directors (&ldquo;BoD&rdquo;) or Boards of Commissioners (&ldquo;BoC&rdquo;) for a company to be established in Indonesia as a branch office or subsidiary of a foreign company.</li>
</ol>
Please note that MoLHR Reg 22/2023 specifies that the number of prospective members for both BoD and BoC is limited to a maximum of 10 individuals per company.
Below, we provide a summary of the main characteristics of capital investment golden visa.
<table class="border text-sm border-dark align-top w-full">
<thead>
<tr class="article-table-row">
<th style="vertical-align: top; text-align: center; font-weight: 500;">Investors</th>
<th style="vertical-align: top; text-align: center; font-weight: 500;">Required Investment</th>
<th style="vertical-align: top; text-align: center; font-weight: 500;">Min. Investment Amount</th>
<th style="vertical-align: top; text-align: center; font-weight: 500;">Stay Period</th>
<th style="vertical-align: top; text-align: center; font-weight: 500;">Min. Leaving Expenses</th>
<th style="vertical-align: top; text-align: center; font-weight: 500;">Min. Shares Ownership in Offshore Company</th>
<th style="vertical-align: top; text-align: center; font-weight: 500;">Min. Turnover/Sales Value in Offshore Company</th>
</tr>
</thead>
<tbody>
<tr class="article-table-row">
<td rowspan="5">Foreign Individual</td>
<td rowspan="2">Establish a new company in Indonesia</td>
<td>US$2.5 million</td>
<td>5 years</td>
<td>US$5000</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr class="article-table-row">
<td>US$ 5 million</td>
<td>10 years</td>
<td>US$5000</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr class="article-table-row">
<td>
<ol class="lg:pl-4">
<li class="flex gap-1">a. Acquisition of Indonesian government bonds</li>
</ol>
</td>
<td>US$350,000</td>
<td>5 years</td>
<td>US$5000</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr class="article-table-row">
<td>
<ol class="lg:pl-4">
<li class="flex gap-1">b.Acquisition of shares or mutual funds in a publicly listed company</li>
</ol>
</td>
<td>US$350,000</td>
<td>10 years</td>
<td>US$5000</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr class="article-table-row">
<td>Purchase of flats or apartments</td>
<td>US$1 million</td>
<td>10 years</td>
<td>US$5000</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr class="article-table-row">
<td rowspan="2">Members of BoD and BoC</td>
<td rowspan="2">Establish a new Indonesian company that is a branch office or subsidiary of foreign company</td>
<td>US$25 million</td>
<td>5 years</td>
<td>US$5000</td>
<td>20%</td>
<td>US$25,000,000 per year</td>
</tr>
<tr class="article-table-row">
<td>US$50 million</td>
<td>10 years</td>
<td>US$5000</td>
<td>20%</td>
<td>US$50,000,000 per year</td>
</tr>
</tbody>
</table>
The foreign individuals mentioned in the table above must submit their immigration documents, including a passport, proof of an "immigration guarantee" (in the form of a commitment to either purchase the relevant assets or fund the required investment level described above), and proof of living expenses coverage, to the relevant immigration office when applying for a limited stay visa. Additionally, Individual investors and corporate investors intending to establish a company in Indonesia are also obligated to provide additional documents. These include proof of share ownership in a company outside Indonesia and the turnover/sales value of the related offshore company. These details should be documented in the audited financial report of the principal company. The financial audit report must be conducted by an international-standard public accounting firm.
Incentives and Facilities
MoLHR Reg 22/2023 specifies that Golden Visa holders will receive, at a minimum, the following incentives:
<ol class="list-decimal pl-5">
<li>access to priority checking lanes at official immigration checkpoints, as stipulated by the MoLHR;</li>
<li>priority services at immigration offices; or</li>
<li>priority services from pertinent government agencies and/or ministries, as per cooperation agreements.</li>
</ol>
Renewal Possibilities for the Golden VisaBottom of Form
For five-year limited stay periods under the golden visa, extensions can be requested, provided that the cumulative extension does not surpass 10 years. However, MoLHR Reg 22/2023 outlines a mechanism for certain golden visa holders to be eligible to apply for a "permanent stay permit." This permit is essentially a five-year limited stay permit that can be extended indefinitely. However, holders must fulfill the obligation of reporting to the immigration office every five years and submit a range of documents for examination and approval, primarily to ensure regulatory compliance.
Conclusion
MoLHR Reg 22/2023 introduces the Golden Visa, aimed at promoting foreign investment in Indonesia. The regulation outlines criteria for investors, specifying required investments, minimum living expenses, and additional documentation. Golden Visa holders enjoy incentives such as priority services and expedited immigration processes. MoLHR Reg 22/2023 allows for visa extensions up to 10 years and introduces a mechanism for a "permanent stay permit" for certain holders. Overall, it provides a structured framework to attract foreign investment while ensuring regulatory compliance.

GR 33/2023 brings significant changes to Indonesia's energy sector, focusing on energy conservation. It introduces the "Energy Management" program, requiring specific industries to participate. These sectors must appoint energy managers, develop energy efficiency plans, conduct regular audits, and implement audit recommendations. 

GR 33/2023 also establishes Energy Performance Standards and Energy-Saving Labels for products, encourages financial support through collaborations with financial institutions, and provides incentives like tax benefits and government recognition for businesses actively conserving energy.

Golden Visa for Capital Investment

<ul>
<li><a href="https://eksa-cms-production.up.railway.app/assets/371630c8-c2d6-4ced-818a-2d8f0032387c.pdf?download">
<h1>Energy Conservation in Energy Utilization</h1>
</a></li>
<li><a href="#doc2">
<h1>Various Efforts for Energy Conservation</h1>
</a></li>
<li><a href="#doc3">
<h1>Facilities, Incentives, and Disincentives</h1>
</a></li>
</ul>
&nbsp;
On June 16, 2023, the Indonesian Government introduced a landmark change in the energy sector through Government Regulation Number 33 of 2023 on Energy Conservation (&ldquo;GR 33/2023&rdquo;), supplanting the previous regulation, Government Regulation Number 70 of 2009 (&ldquo;GR 70/2009&rdquo;). This new regulation signifies a paradigm shift in energy conservation efforts, imposing updated obligations on both energy users and suppliers. One of the pivotal alterations is the introduction of the "Energy Management" program, compelling specific industries to actively participate in energy conservation initiatives. These measures encompass a spectrum of activities, including energy conservation training, certification processes, and rigorous energy audits. Additionally, GR 33/2023 underscores the government's proactive role, offering financial support to bolster energy conservation endeavors, demonstrating a firm commitment to sustainable energy practices in the country
<div>
The Energy Management program shall be implemented through:
<ul class="list-decimal pl-4">
<li>appointment of energy manager;</li>
<li>preparation of energy efficiency program;</li>
<li>implementation of periodic energy audits; and</li>
<li>implementation of recommendations of the result of an energy audit.</li>
</ul>
</div>
The preparation of an energy efficiency program must include details about the planned actions, the types and amounts of energy used, the use of energy-efficient devices, measures taken to enhance energy efficiency, the quantity of products or services, and the energy performance.
<h2 id="doc1">A. Energy Conservation in Energy Utilization</h2>
According to GR 33/2023, certain business sectors (based on specific energy consumption criteria) are obliged to implement and report their Energy Management implementation to the Ministry of Energy and Mineral Resources (&ldquo;MoEMR&rdquo;) every year. For businesses not falling within this category, although it's not mandatory, there is a strong recommendation to embrace Energy Management practices.
The business sectors that are obliged to implement and report their Energy Management are:
<ol>
<li>Energy Providers (e.g., power plants) who utilize Energy Sources and/or Energy greater than or equal to 6,000 (six thousand) equivalents to tons of oil per year</li>
<li>Transportation sector that utilizes Energy Sources and/or Energy greater than or equal to 4,000 (four thousand) equivalents to tons of oil per year</li>
<li>Industrial sector that utilizes Energy Sources and/or Energy greater than or equal to 4,000 (four thousand) equivalents to tons of oil per year</li>
<li>Building sector (e.g., office building management, shopping centers, education centers, hotels, apartments, and/or hospitals) that utilizes Energy Sources and/or Energy greater than or equal to 500 (five hundred) equivalents to tons of oil per year</li>
</ol>
Please take note that GR 33/2023 specifies that the requirement to carry out the aforementioned Energy Management activities will be enforced within a period of 12 months from its enactment, commencing on June 16, 2024.
<h2 id="doc2">B. Various Efforts for Energy Conservation</h2>
GR 33/2023 also regulates the subsequent activities concerning energy preservation:
<ol class="list-decimal pl-4">
<li>Energy Performance Standards and Energy-Saving Labels
Energy-efficient and/or energy-saving labels will be granted as evidence that a product has fulfilled energy performance standards, which will be affixed by the producers/importers. Energy-efficient technologies must comply with the Domestic Component Levels (Tingkat Komponen Dalam Negeri, &ldquo;TKDN&rdquo;)
</li>
<li>Financing
The government will cooperate with the Indonesian Central Bank (Bank Indonesia, &ldquo;BI&rdquo;) and the Financial Services Authority (Otoritas Jasa Keuangan, &ldquo;OJK&rdquo;) to give financial support for energy conservation.
</li>
<li>Development of Energy Conservation Services Businesses
Encouragement is given to businesses engaged in energy conservation services to enhance their support for energy preservation. This support encompasses:
<ol class="pl-5" style="list-style-type: lower-alpha;">
<li>Investment Grade Energy Audit;</li>
<li>Financing of Energy Efficiency Projects;</li>
<li>construction, development, and/or monitoring of projects related to Energy Efficiency Projects;</li>
<li>operation, maintenance, and reparations of energy installations; and/or</li>
<li>measuring and verification of energy performance.</li>
</ol>
</li>
</ol>
&nbsp;
<h2 id="doc3">C. Facilities, Incentives, and Disincentives</h2>
&nbsp;
GR 33/2023 provides a comprehensive framework to assist energy providers, users, producers, and importers in their energy conservation efforts. This support encompasses the provision of information, consultation services, and facilitated financial access.
Businesses actively engaged in energy conservation efforts will receive incentives, including favorable taxation policies and official recognition certificates issued by the government. Conversely, companies failing to implement Energy Management measures may face formal written warnings, publication in mass media, and/or the potential revocation of incentives as disciplinary actions.
<h3>Conclusion</h3>
GR 33/2023 brings significant changes to Indonesia's energy sector, focusing on energy conservation. It introduces the "Energy Management" program, requiring specific industries to participate. These sectors must appoint energy managers, develop energy efficiency plans, conduct regular audits, and implement audit recommendations. GR 33/2023 also establishes Energy Performance Standards and Energy-Saving Labels for products, encourages financial support through collaborations with financial institutions, and provides incentives like tax benefits and government recognition for businesses actively conserving energy.
For non-compliant companies, there are penalties such as warnings and public exposure. Overall, GR 33/2023 aims to promote sustainable energy practices and accountability in Indonesia.

PRECISE | STRATEGIC | DETERMINED

News &
Publications

Indonesia Drives Energy Conservation to Empower Sustainability

Golden Visa for Capital Investment

Professionals

Career

PRECISE | STRATEGIC | DETERMINED

News &Publications

Indonesia Drives Energy Conservation to Empower Sustainability

Golden Visa for Capital Investment

Professionals

Career

News &
Publications