JAKARTA (Dow Jones)--Indonesia's Parliament Tuesday approved a new electricity law allowing private-sector investment in generation and granting authority to the government and regional administrations to issue permits for power projects, the Department of Energy and Mineral Resources said in a statement.
Under the new law, private companies, community organizations or other private organizations will be allowed to generate, transmit, distribute and sell electricity.
Still, state-owned bodies will still be given the first right of refusal to develop projects, the statement said.
Regional, provincial, city and district governments will be given the authority to approve power projects, it said.
Allowing competition in the power sector would effectively end the monopoly of state electricity company PT Perusahaan Listrik Negara.