Government Reviews Regulations on Private Sector Participation in Electric Power Transmission Networks

The Ministry of Energy and Mineral Resources (“ESDM”) is currently formulating groundbreaking regulations to increase the private sector’s involvement in the construction and ownership of electric power transmission networks in Indonesia. 

Ahmad Amiruddin, Director of Electricity Program Development at the Directorate-General of Electricity (“DJK”) at the Ministry of ESDM, stated that the government is encouraging the private sector to play a role that is no longer limited to merely providing construction services. “We are working to develop regulatory innovations so that private-sector involvement can be significantly greater than merely serving as an EPC (“Engineering, Procurement, and Construction”) contractor in the transmission sector,” said Ahmad.

He explained that one option currently under review and discussion is to open opportunities for the private sector to become owners of transmission grids. Through this measure, the government and PT PLN (Persero) aim to provide extensive opportunities for private companies to participate in the ownership of transmission networks across the country.

Ahmad emphasized that pursuing this regulatory breakthrough is crucial because the development of transmission networks cannot continue to rely solely on government funds, PLN’s internal budget, or loan schemes from donor agencies and lenders.