New Mechanism for Purchase of Electricity from Renewable-Energy Power Plants

The Ministry of Energy and Mineral Resources (“Ministry”) has once again amended the various provisions which address the country's renewable-energy resources in order to accelerate the development of renewable energy within Indonesia for the purpose of national electricity production. This time, the Ministry has issued Regulation No. 50 of 2017 on the Utilization of Renewable-Energy Resources for the Production of Electricity (“Regulation 50/2017”). [1] Prior to the issuance of Regulation 50/2017, these same matters were regulated under Ministry Regulation No. 12 of 2017 , [2] as amended by Ministry Regulation No. 43 of 2017 (collectively referred to as “Previous Regulations”).Regulation 50/2017 sets out a number of comprehensive provisions which pertain to the renewable energy. However, due to the broad scope of Regulation 50/2017, this edition of Indonesian Legal Brief will confine its discussions to the following areas only: