Public Interest Electricity - Guidelines

In order to implement Article 10 of Government Regulation No. 10 of 1989 the Minister of Energy and Mineral Resources has issued Regulation No. 26 of 2008. The Regulation has been drafted to expedite the process of determining business zones for the supply of electricity in the public interest for those that hold the appropriate licenses.

Once a business holds a Business License for Electricity in the Public Interest (Izin Usaha Ketenagalistrikan untuk Kepentingan Umum / IUKU) then they may commence supply of electricity. These license holders may also be involved in activities such as electricity generation, transmission, and distribution.

The procedures for the submission of an IUKU application are listed in the Regulation. Whether the application goes to the local regent or mayor, or to the Governor, or to the Minister is set out in Article 3. The standard information required by all applicants includes: the identity of the applicant, deed of establishment of the business, profile of the business, tax payer number, and a statement attesting to available funds. The applicant is also required to submit a number of technical details such as the ability of the proposed location to satisfy the needs of generation and supply. Furthermore, the applicant must supply a needs and supply plan.

Once an application has been received, a determination of the business zone is to be made in 30 days. Any rejection must be supplied in writing to the applicant and this notification must set out the reasons for rejection.

The Regulation has been in force since 14 August 2008.