The Role of the Private Sector in the Provision of Clean Electricity in the Draft Bill

Indonesian Independent Power Producer Association (Asosiasi Produsen Listrik Swasta Indonesia - "APLSI") conveyed the need for private sector participation alongside PT PLN (Persero) in the provision of electricity in the discussion of the Draft Bill ("Electricity Draft Bill") on the Third Amendment to Law No. 30 of 2009 on Electricity ("Law 30/2009"). The Chair of APLSI, Arthur Simatupang stated that he is not concerned despite the fact that the amendment to Law 30/2009 is primarily aimed at accommodating the ruling of the Decision of Constitutional Court (MK) No. 39/PUU-XXI/2023 which emphasizes the prohibition of the unbundling principle in the electricity system.

In his input to the House of Representatives of the Republic of Indonesia (DPR RI) on the Electricity Draft Bill, he stated that the role of the private sector in electricity supply must be maintained, given the high targets set in the General Electricity Supply Plan (Rencana Umum Penyediaan Tenaga Listrik - "RUPTL"), particularly through New and Renewable Energy (Energi Baru dan Terbarukan - "EBT"). He noted that without private sector involvement, it would be difficult to achieve the 10-year targets.

“How can we ensure that the targets set in the RUPTL, which have already been committed to for the next 10 years, are not just left on the drawing board?” Arthur said.

In the Electricity Draft Bill obtained by Hukumonline, amendments to Article 6 emphasize prioritizing EBT as the primary energy source for sustainable electricity supply.

“The utilization of primary energy sources as referred to in paragraph (1) must be implemented by prioritizing the utilization of new and renewable energy sources,” reads Article 6 Paragraph (1) of the Electricity Draft Bill.