How Does PERPRES 169/2024 Restructure Indonesia’s Energy and Mineral Resources Governance?

1.0 Regulatory Foundation

PERPRES 169/2024 establishes the organizational framework for Indonesia’s Kementerian Energi dan Sumber Daya Mineral (Ministry of Energy and Mineral Resources, "ESDM"). Enacted in 2024, this regulation replaces prior governance structures to enhance sectoral oversight.

Key Definitions (Pasal 1):

"Kementerian adalah kementerian yang menyelenggarakan urusan pemerintahan di bidang energi dan sumber daya mineral."
Translation: "The Ministry is the ministry that administers government affairs in the energy and mineral resources sector."

"Menteri adalah menteri yang menyelenggarakan urusan pemerintahan di bidang energi dan sumber daya mineral."
Translation: "The Minister is the minister who administers government affairs in the energy and mineral resources sector."

Matrix 1.1: Key Definitions

2.0 Core Framework

The regulation centralizes enforcement and technical operations under the Ministry. Pasal 25 mandates the Direktorat Jenderal Penegakan Hukum Energi dan Sumber Daya Mineral (Directorate General of Energy and Mineral Resources Law Enforcement) to:

"melaksanakan kebijakan di bidang pencegahan, penanganan pengaduan, pengawasan kepatuhan hukum, penyidikan, pengenaan sanksi administratif, dan penerapan hukum pidana."
Translation: "implement policies on prevention, complaint handling, legal compliance oversight, investigations, administrative sanctions, and criminal law application."

Matrix 2.1: Enforcement Functions

Pasal 40 introduces mandatory systems for governance:

"Menteri ... menerapkan sistem akuntabilitas kinerja pemerintah, manajemen risiko pembangunan nasional, dan transformasi digital nasional."
Translation: "The Minister ... implements government performance accountability, national risk management, and digital transformation systems."

3.0 Implementation Requirements

Technical units (Unit Pelaksana Teknis) may be formed under Pasal 38 for operational tasks, subject to Ministerial approval and coordination with the Ministry of Administrative and Bureaucratic Reform (Pasal 39).

Matrix 3.1: Technical Unit Requirements

4.0 Enforcement & Sanctions

The Directorate General (Pasal 25) is empowered to impose administrative sanctions (e.g., fines, suspensions) for violations. Criminal penalties may apply for severe offenses, though specific sanctions are deferred to sectoral laws (e.g., Mineral and Coal Law).

5.0 Implications & Outlook

Stakeholder Impact:
- Ministry ESDM: Strengthened enforcement and digital governance capacity.
- Businesses: Increased compliance obligations in energy/mining operations.
- Public: Enhanced accountability mechanisms for sectoral grievances.

Compliance Takeaways:
1. Energy/mining operators must align with updated enforcement protocols.
2. Technical units require strict approval processes to ensure accountability.
3. Digital transformation integration is mandatory for all Ministry operations.

Official Source

View the full regulation: https://peraturan.bpk.go.id/
Citation: Presidential Regulation No. 169 of 2024 on the Ministry of Energy and Mineral Resources.

Law Database

Access PERPRES 169/2024 in the CRPG Law Database: PERPRES 169/2024

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