Constitutional Court Emphasizes the State-Control Principle for Electricity Businesses

The Constitutional Court (“Court”) rendered Decision No. 111/PUU-XIII/2015 (“Decision”) on 14 December 2016. Through this Decision, the Court has redefined several provisions which relate to the management of the nation’s electrical power, as set out in Law No. 30 of 2009 on Electricity (“Electricity Law”). These provisions address: the unbundling of electricity management, electricity procurement by private business entities, electricity tariffs and supporting electricity-business activity.[1]
 
Petition
 
On 20 August 2015, two employees of the State Power Company (“PT PLN”), namelyMr. Adri, who also serves as the chairman of the PT PLN Labor Union (“PLN-Union”) and Mr. Eko Sumantri, who is also the general secretary of the PLN Labor Union (“Petitioner”) submitted a petition to the Court requesting a judicial review of numerous articles originally set out under the Electricity Law.[2] In detail, the requested review articles were:[3]