Draft Regulation of the Government on Electricity Supply Facilitates Licensing

The government is finalizing Draft Regulation of the Government (“Draft Regulation”) on Electricity Supply Business Activities (“UPTL”) to replace Regulation of the Government (“Regulation”) No. 14 of 2012 on Electricity Supply Business Activities, as amended by Regulation No. 23 of 2014 (collectively referred to as “Regulation 14/2012”). Currently, the new regulation is being discussed across ministries and institutions for harmonization.

“We are discussing the revision of Regulation 14/2012 related to UPTL,” said the Director-General of New Renewable Energy and Energy Conservation (“Director-General”) of the Ministry of Energy and Mineral Resources (“ESDM”), Eniya Listiani Dewi.

The changes to the regulation focus on facilitating business licensing and strengthening the commitment to provide electricity based on new and renewable energy (“EBT”), including adjusting to the substance contained in Decision of Constitutional Court No. 39/PUU-XXI/2023 (“Decision 39/2023”).

Referring to the Draft Regulation on UPTL obtained by Hukumonline, the commitment to provide electricity based on EBT is regulated in Article 4 paragraph (6), which ensures the provision of fiscal and non-fiscal incentives for EBT power plant owners.

Meanwhile, Article 34 of the UPTL Draft Regulation regulates the electricity network rental scheme prioritized for EBT power plants to increase economic added value, develop sustainable industrial areas, and develop Special Economic Zones, including support for national strategic projects and areas that do not yet have electricity.