Draft Electricity Bill Regulates New Agency for Upstream Sector

The XII Committee of Indonesia’s House of Representatives (“ DPR RI ”) has opened the opportunity for the establishment of a dedicated regulatory body for electricity within the Draft Bill No. 30 of 2009 on the Third Amendment to Law, as amended by Law No. 2 of 2022 on Job Creation (collectively referred to as “ UU 30/2009 ”).

“The existence of an electricity regulatory body is urgent in the Draft Electricity Bill,” stated Eddy Soeparno, a member of the XII Committee of the DPR RI, to Hukumonline.

Eddy mentioned that the establishment of a dedicated body for the electricity sector is necessary to carry out independent oversight and regulation drafting. According to him, the upstream electricity sector, which includes activities from power generation to transmission networks, should be the focus of the body’s supervision.

“So, what is truly crucial will be more focused on the regulation at the upstream level, including generation, networks, grids, and so on,” added Eddy.