Mandatory Provisions for Power-Purchase Agreements

The Ministry of Energy and Mineral Resources (“Ministry”) has issued Regulation No. 10 of 2017 on Main Provisions for Power-Purchase Agreements (“Regulation 10/2017”) in a bid to offer greater certainty relating to the sale and purchase of electrical power.[1]  
 
With this ultimate goal in mind, Regulation 10/2017 sets out a number of mandatory provisions which must be incorporated into all official Power-Purchase Agreements (Perjanjian Jual Beli Tenaga Listrik – “PJBL”) which are drawn up between independent power producers (“IPP”) as sellers and Indonesia's state electricity company (PT Perusahaan Listrik Negara – “PT PLN”) as the buyer.[2]
 
Mandatory PJBL Provisions
 
Regulation 10/2017 stipulates that 14 main provisions are required to be included in a PJBL, and these provisions should address: [3]