Cross Border Electricity Trade

Government Regulation No. 42 of 2012 on Cross Border Electricity Trade (“Regulation”) was issued to implement Article 41 of Law No. 30 of 2009 on Electricity. Article 41 mandates the issuance of a government regulation on cross border electricity trading.

Article 2 (2) stipulates that cross border electricity trading can only be conducted by businesses that have obtained an electricity power supply license. In addition, an electricity power supply license holder must acquire a license to “sell” or “purchase” cross border electricity from the Minister of Energy and Mineral Resources (“Minister”). It should be noted, pursuant to Article 3, cross border electricity trading activities must abide by customs legislation.