Draft Regulation on Coal and Natural Gas Supply: Power Plant Fuel Procurement and Distribution to Be Centralized Under BLU Sektor Energi

In an effort to strengthen national energy security and ensure reliable electricity supply for communities and domestic industries, the Government is preparing a Draft Regulation of the President (“Draft Regulation”) on the Provision of Coal and Natural Gas for Public Interest Power Generation by an Energy-Sector Public Service Agency (Badan Layanan Umum Sektor Energi – “BLU Sektor Energi”).[1]

This Draft Regulation aims to strengthen national energy security, ensure the availability of coal and natural gas for electricity supply, and maintain the affordability of electricity supply costs.[2] In principle, power-generation business entities must ensure that coal and natural gas supplies meet the quality and/or quantity requirements of each power plant. Natural gas may be supplied through pipelines or in the form of liquefied natural gas (LNG).[3]