- In a bid to support the ongoing development of the government’s 35,000 megawatt program, the Minister of Energy and Mineral Resources has issued Regulation No. 10 of 2017 on the Main Provisions for Power-Purchase Agreements, as previously amended twice, most recently through the issuance of Regulation No. 10 of 2018 (collectively referred to as “PPA Regulation”).
- According to Eri Nurcahyanto, Head of the Sub Directorate for Electricity Pricing at the Ministry of Energy and Mineral Resources, the positions of independent power producers (“IPP”), as the sellers of electricity, and of Indonesia's state electricity company (“PLN”), as the buyers, is now proportional, since PLN and IPP are no longer required to bear any force-majeure risk on behalf of the government, which could have ultimately affected their business.
- However, legal practitioners are still concerned about the electricity grid force-majeure provision, as set out under the PPA Regulation. Under this provision, PLN may be exempted from their payment obligations due to the occurrence of any natural disturbance within the PLN grid. This exemption is currently a major concern of businesses operating within Indonesia.
- For more on the PPA Agreement, see ILBs No. 3060 and No. 3186.
- For more on this story, see Hukumonline: “Aturan Jual Beli Tenaga Listrik Dinilai Lebih Proporsional”.
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