Energy Management: From Cost-Saving to Transparency and Data Accountability

Who Is Required to Implement Energy Management?

For certain companies in Indonesia, the implementation of Energy Management or an Energy Management System (EMS) is no longer optional. MEMR Regulation No. 8 of 2025 requires organizations whose annual energy consumption exceeds certain thresholds to implement energy management:

These thresholds serve as a basis for converting different types of energy into a common unit. Therefore, companies need to account for their overall energy consumption comprehensively, rather than looking only at electricity bills. Companies below these thresholds may still implement energy management voluntarily. This is important because energy savings can provide direct benefits, including lower costs, improved operational reliability, and reduced emissions.

The regulation does not stop at the establishment of policies. Energy management must be implemented as a continuous improvement cycle. In other words, energy management is not only about the end result of energy savings, but also about the process that generates data and performance outcomes.

Energy Management under PSPK 1/2 & ISSB Reporting Standards 
On 1 July 2025, the Sustainability Standards Board of the Indonesian Institute of Accountants (IAI) approved PSPK 1 and PSPK 2. PSPK 1 sets out general requirements for the disclosure of sustainability-related financial information, while PSPK 2 addresses climate-related disclosures. Both standards are effective from 1 January 2027, with early adoption permitted.

PSPK 1 and PSPK 2 were developed in alignment with the ISSB standards, particularly IFRS S1 and IFRS S2. The framework emphasizes four areas of disclosure:

• Governance
• Strategy
• Risk management
• Metrics and targets

The adoption of these standards indicates that sustainability reports presented to the public and investors must be supported by empirical evidence of energy use that can be cross-checked by accounting auditors. This also means that structured energy audit data can serve as evidence of the effectiveness of energy governance and the management of business transition risks addressed under PSPK 1. Meanwhile, under PSPK 2, verified measurements of raw energy consumption will serve as the basis for calculating carbon emissions that are ready for audit. 

What Do Companies Need to Prepare?
In responding to MEMR regulations and PSPK financial reporting standards, companies need to take adaptive measures by preparing for the following:

1. Mapping Energy Consumption
2. Establishing Governance
3. Developing Baseline Data and Indicators
4. Integrating Energy Data Across Functions
5. Developing Improvement and Monitoring Plans

ISO 50001 as an established international standard for EMS can be used as a supporting framework for developing a sustainable energy performance improvement system. Its implementation should nevertheless be aligned with Indonesian regulations and the specific needs of the company. 

Turning Energy into Value 
The benefits of EMS may be evident in reduced energy consumption and operational costs. However, their strategic value extends far beyond these outcomes. Energy data is one of the foundations for emissions calculations. Therefore, companies claiming to have reduced their emissions also need to be able to explain the evidence chain: measured, recorded, calculated, verified, and reported.

As an ESG and decarbonization consultant, Greenwise Consulting supports companies in defining measurable and implementable sustainability actions for the climate transition, as well as adaptive strategies for reporting climate impacts on corporate sustainability, including Energy Management.