House to debate new power bill soon

Moch. N. Kurniawan, The Jakarta Post, Jakarta

The House of Representatives would start deliberating the country's new power bill later this month, which is aimed at ending the monopoly of the state-owned electricity company PLN and liberalizing the sector, a senior legislator said over the weekend.

Chairman of House Commission VIII on science, technology and environmental affairs Irwan Prayitno said the debate was scheduled to start on Nov. 20 and was expected to pass into law early next year.

"We need to open up this sector. We hope this (liberalization) will allow customers to enjoy better services and lower tariffs than today," Irwan told The Jakarta Post.

He said that the new bill will replace Law No. 15/1985 on power, which is seen as discouraging private investment in the power sector.

Indonesia needs new investment in the sector to avoid power shortages, but the cash-strapped government does not have enough funds.

Irwan said that under the proposed new law, PLN's monopoly in supplying power to the country would be terminated but it would still enjoy a seven-year "transitional period."

According to the bill, the government would set up a special regulating body, which would take over PLN's task in supervising the country's power supply.

"We want PLN to become a player, not just a regulator," Irwan said.

According to him, the bill would also allow the provincial administration to establish its own regional power policy and to determine a regional tariff, a role which is not stated in the current law.

"This will force the central government to also consider the provincial administrations in formulating the national power policy," he said.

Last month the House approved the country's new law on oil and gas after a long debate and several delays.