The Government has issued Presidential Regulation No. 4 of 2010 to task PT Perusahaan Listrik Negara (State Electricity Company / PT PLN) to facilitate the expediting of the development of electricity generators using new energy, coal, and gas. The regulation is to ensure the more rapid diversification of energy away from traditional fossil fuel with a few to fulfilling the ever-expanding community needs for electricity.
The basic premise of the regulation is that PT PLN will enter into cooperative agreements with private electricity developers to buy and sell electricity. It is expected that electricity generation using new energy, coal, and gas will use environmentally friendly technology pursuant to prevailing laws and regulations. To this end, all electricity generation developments must have undertaken an environmental impact study and procured the necessary land (free of competing title claims and having paid appropriate compensation). The land procurement process must be completed with 120 days from the date of the original application.
Even though PT PLN has been tasked with procuring electricity generator development and related transmission grids, the Minister of Energy and Mineral Resources is to regulate matters related to capacity, location, and transmission.
Funding for electricity generators is to be borne by the state budget, internal PT PLN budgetary funds, and from any other legal source.
The regulation envisages that this development projects will benefit from facilities such as duty exemptions for imports. These facilities are to be regulated by the Minister of Finance.
There is also an explicit requirement for the prioritizing the use of domestic products in the approved electricity generation development projects.
A Coordination Team is to be established and PT PLN is to report to this Team every three months.
The regulation was issued on 8 January 2010 and remains in force until 31 December 2014.
The Government has issued Presidential Regulation No. 4 of 2010 to task PT Perusahaan Listrik Negara (State Electricity Company / PT PLN) to facilitate the expediting of the development of electricity generators using new energy, coal, and gas. The regulation is to ensure the more rapid diversification of energy away from traditional fossil fuel with a few to fulfilling the ever-expanding community needs for electricity.
The basic premise of the regulation is that PT PLN will enter into cooperative agreements with private electricity developers to buy and sell electricity. It is expected that electricity generation using new energy, coal, and gas will use environmentally friendly technology pursuant to prevailing laws and regulations. To this end, all electricity generation developments must have undertaken an environmental impact study and procured the necessary land (free of competing title claims and having paid appropriate compensation). The land procurement process must be completed with 120 days from the date of the original application.
Even though PT PLN has been tasked with procuring electricity generator development and related transmission grids, the Minister of Energy and Mineral Resources is to regulate matters related to capacity, location, and transmission.
Funding for electricity generators is to be borne by the state budget, internal PT PLN budgetary funds, and from any other legal source.
The regulation envisages that this development projects will benefit from facilities such as duty exemptions for imports. These facilities are to be regulated by the Minister of Finance.
There is also an explicit requirement for the prioritizing the use of domestic products in the approved electricity generation development projects.
A Coordination Team is to be established and PT PLN is to report to this Team every three months.
The regulation was issued on 8 January 2010 and remains in force until 31 December 2014.
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