Govt to propose new power law<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
The government, in response to the Constitutional Court's
\nannulling Electricity Law No. 20\/2002, said it would draft a new
\nlaw that would take a "softer" approach to liberalizing the power
\nsector.<\/p>\n
The new draft law is expected to be completed for submission
\nto the House of Representatives in early January, Director
\nGeneral of Electricity and Energy Utilization Yogo Pratomo at the
\nenergy ministry said on Thursday.<\/p>\n
"The reasons for annulling the law concern only a few
\narticles, so I do not think it would take long to revise or
\nmodify (the law). We hope to submit it (to the House) by the
\nmiddle of next month," Yogo told a press conference. "...The
\nspirit (of liberalization) of those articles may have to be toned
\ndown a bit, to accommodate as many interests as possible."<\/p>\n
He did not elaborate, and said only that the matter would be
\ndiscussed further in the drafting process.<\/p>\n
The Electricity Law, endorsed by the House in 2002, aims at a
\ngradual liberalization of the power sector, which has been
\nmonopolized for decades by state electricity firm PT PLN.<\/p>\n
The law states that, starting in 2007, private companies may
\nproduce and sell power to the public in Java, Bali and Madura.<\/p>\n
Only three articles -- Articles 16, 17 and 68 -- contain
\nstipulations on liberalizing the power sector.<\/p>\n
The Constitutional Court ruled on Wednesday that the law be
\nannulled, arguing that electricity was a commodity vital to the
\nlives of many citizens and should therefore remain under
\ngovernment control. In addition, the court reinstated the defunct
\nElectricity Law No. 15\/1985.<\/p>\n
The court reviewed the case upon complaints filed on behalf of
\nPLN workers by non-governmental organizations (NGOs) and labor
\nunions, which claimed the law would lead to layoffs and higher
\nelectricity rates for consumers.<\/p>\n
Meanwhile, Minister of Energy and Mineral Resources Purnomo
\nYusgiantoro said the government needed to focus on revising the
\nthree articles as soon as possible, so as not to cause any
\nconfusion among existing and potential investors.<\/p>\n
"(A prompt revision) is important in sending a sign to
\ninvestors that the government is committed to inviting them to
\ndevelop our power sector," Purnomo said.<\/p>\n
"As we said earlier, of the US$30 billion or so needed to
\ndevelop the sector, $20 billion is expected to come from the
\nprivate sector," he added.<\/p>\n
Meanwhile, Yogo said several investors had already voiced
\ntheir concerns over the court's decision.<\/p>\n
"We have received questions from certain investors, including
\nthose from Germany and Japan, on the issue. To be honest, this
\n(annulment) has the potential to derail investor confidence about
\nlegal certainty here," Yogo said.<\/p>\n
Separately, PLN president Eddie Widiono said the annulment
\nwould not affect its current contracts.<\/p>\n
"PLN is still studying its impact, but our tentative
\nconclusion is that it will not have a negative effect on our
\nexisting power purchase contracts and will not lead to their
\nrenegotiation," he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-propose-new-power-law-1447893297",
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"sponsor": "Okusi Associates",
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