Electric Power Supply Businesses

The government has issued Government Regulation No. 14 of 2012 on Electric Power Supply Business Activities (“Regulation”). The Regulation is aimed at implementing Law No. 30 of 2009 on Electricity ("Electricity Law"), which requires the government to regulate electric power supply businesses; electric power supply business licenses and operation licenses; compensation for land use; electric power sales prices, network leases, and tariffs; electricity safety, operational feasibility certificates, Indonesian national standards, competency certificates; electric power network use; development and supervision of electric power supply businesses; and administrative sanctions.

Important terms are defined in Article 1. For example, an electric power supply business, as elaborated on in Article 1 (1), is defined as an activity that includes: power generation; transmission; distribution; and the sale of electric power.