DPR Accommodates Constitutional Court Decision in Electricity Draft Bill

Commission XII of the House of Representatives of the Republic of Indonesia (“DPR RI”) has confirmed that the amendment to Law No. 30 of 2009 on Electricity (“Electricity Law”), will follow up on a number of Constitutional Court decisions resulting from judicial review of the regulation.

Deputy Chair of Commission XII of the DPR RI, Sugeng Suparwoto, explained that Decision of the Constitutional Court (“MK”) No. 39/PUU-XXI/2023 (“Decision 39/2023”) which emphasizes the prohibition of the unbundling principle for electricity supply businesses for public interest, is a key consideration in revising the Law.

“This is what is called (the Constitutional Court decision) unbundling. This is a concern for all of us,” he told Hukumonline.

Even so, Sugeng assured that the involvement of private companies in electricity generation through the Independent Power Producer (“IPP”) after the MK Decision could still be carried out. He referred to the existence of access rights provisions that emphasize the state's obligation to provide electricity networks outside of electricity generation, which can still be carried out by state-owned and private enterprises.

“It should not be affected (by the MK Decision),” he said.