House to debate new power bill soon

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.