Mandatory Provisions for Power-Purchase Agreements

The Ministry of Energy and Mineral Resources(“Ministry”)has issued Regulation No. 10 of 2017 on Main Provisions for Power-Purchase Agreements(“Regulation 10/2017”)in a bid to offer greater certainty relating to the sale and purchase of electrical power. [1] With this ultimate goal in mind, Regulation 10/2017 sets out a number of mandatory provisions which must be incorporated into all official Power-Purchase Agreements (Perjanjian Jual Beli Tenaga Listrik–“PJBL”) which are drawn up between independent power producers(“IPP”)as sellers and Indonesia's state electricity company (PT Perusahaan Listrik Negara –“PT PLN”) as the buyer. [2] Mandatory PJBL ProvisionsRegulation 10/2017 stipulates that 14 main provisions are required to be included in a PJBL, and these provisions should address: [3]