ESDM ready to issue regulation to respond CC

JAKARTA. Ministry of Energy and Mineral Resources (ESDM) will release some regulations to respond the removal of two articles of the Law No 30/2009 on Electricity by Constitutional Court (CC or MK). The two articles were revoked by the CC on Thursday (15/12).

The issuance of the regulation aims at accommodating the developer investors of private electricity. “We are preparing (the regulation). But we cannot specify the details. We will issue it,” said Minister of ESDM Ignasius Jonan, Tuesday (20/12).

Meanwhile, Head of Legal Bureau of the Ministry of ESDM Hufron Asrofi said that ESDM respects the CC decision. “The decision mandates us to always refer to the 1945 Constitution,” Hufron added.

The Minister of ESDM itself will review existing electricity regulations to adapt with the CC decision. The existing Law on Electricity allows the electricity business, while presentng the role of state at every business segment. “State plays roles in determining the network rental, electricity price, and electricity power tariffs,” he told KONTAN.

Head of Communication and Public Information and Cooperation Services at the Ministry of ESDM Sujatmiko said that the ministry is formulating several regulations to respond the removal of the two articles by CC. “One of the regulations is Ministerial Regulation on the Principles of the Agreement on Electricity Price,” said Sujatmiko, Tuesday (20/12).

General Chairman of the Association of Indonesian Private Electricity Producers (APLSI) Ali Herman Ibrahim said that APLSI actually did not suggest the government to make new regulations. “However, there should be firm limits on the electricity business, mainly the firm limits on unbundling and the state control,” Ali said, Tuesday (20/12).

He also stated that the CC decision will allow the private developers to participate in electricity provisions. “The private investments remain vital,” Ali added.

Meanwhile, electricity observer Fabby Tumiwa said, the government needs to make the regulations to respond the removal of the two articles of Law on Electricity to calm down the investors, as well as to show certainty in investment. “Minister of Law and Human Rights and Minister of ESDM should issue a kind of letter,” he said, Monday (19/12).

Fabby stated that the government did not have firm respond on the CC decision. According to Fabby, the respond from the government will not lead PLN (State Owned Electricity Company) to be arrogant in running the business. In this case, PLN actually can act on behalf of the removal of the two articles of the Law on Electricity.

“PLN has confirmed that the private power utility will not be interrupted. However, the privates will remain channeling the electricity through PLN’s networks. Therefore, state maintains its existence through PLN,” he added.

Previously, Head of Corporate Communication Unit of PLN I Made Suprateka said that the removal of the two articles will disturb the regulation on the provisions of electricity in rural areas. The regulation allows the privates to involve in constructing the power plants, transmission, until selling the electricity to public.

Furthermore, the removal of the two articles may also interrupt the developer of power plant with the type of power plant utility (PPU) for industrial zone. “Therefore, this will bring various significant effects,” Made said.

(Muhammad Farid/Translator)