Govt issues regulation on power<\/p>\n
Leony Aurora, The Jakarta Post, Jakarta<\/p>\n
To give investors a legal basis for contracts in electricity
\nprojects, the government has issued a government regulation on
\nthe power sector.<\/p>\n
\"We issued Government Regulation No. 3\/2005, last night,\" said
\nMinister of Energy and Mineral Resources Purnomo Yusgiantoro on
\nthe sidelines of the Indogas 2005 conference held here on Monday.<\/p>\n
The regulation supports Law No. 15\/1985 on electricity, which
\nwas reenacted late last year following a ruling by the
\nConstitutional Court which annulled Law No. 20\/2002 on
\nelectricity.<\/p>\n
The 2002 electricity law stipulated the phasing out of the
\nrole of state power firm PT Perusahaan Listrik Negara (PLN), and
\nallowed a greater role for private companies in providing power
\nto the domestic market.<\/p>\n
The court said that liberalization of the sector was against
\nArticle 33 of the 1945 Constitution, which stipulates that
\neconomic sectors important to the state and crucial for the
\nwelfare of the people shall be controlled by the state and must
\nbe developed for the maximum benefit to the people.<\/p>\n
Purnomo said the new regulation was based on the 1885 law on
\nelectricity. \"If the private (sector) wants to do electricity
\nprojects, it has to be in partnership with PLN,\" said Purnomo.<\/p>\n
Companies generating power for their own use or those using
\nrenewable energy can set up the plants independently, without
\nhaving to partner with PLN.<\/p>\n
\"But, their power output have to be sold to PLN,\" said Purnomo
\nfurther.<\/p>\n
The government has said the new government ruling would take
\neffect until the government finalized and submitted an amendment
\nto the law to the House of Representatives, which is expected to
\ntake place later this month.<\/p>\n
Coordinating Minister for the Economy Aburizal Bakrie has said
\nthat the revised law would stipulate that investors would be able
\nto invest in power plant development, but could not sell and
\ndistribute power directly to consumers.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-issues-regulation-on-power-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
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