New Guidelines for the Utilization of Renewable Energy to Meet National Energy-Security Targets

The Ministry of Energy and Mineral Resources(“Ministry”)has issued Regulation No. 12 of 2017 on the Utilization of Renewable Energy for the Procurement of Electrical Power(“Regulation 12/2017”)in order to bolster national energy security and reduce environmental carbon-dioxide levels. With this ultimate goal in mind, Regulation 12/2017 updates provisions which relate to the utilization of renewable energy and the commitment of the State Electricity Company (PT. Perusahaan Listrik Negara–“PLN”) to the purchase of electrical power which is generated through the utilization of renewable energy. [1] Prior to the issuance of Regulation 12/2017, similar provisions were set out under several regulations, including: [2]