The need to develop electricity sources that are not dependent on oil fuels has been identified as a critical element of Indonesia's long- term national development goals. However, this Presidential Regulation does not signify a move away from fossil fuel dependence in the generation of electricity. On the contrary, the Regulation sets out the need for the development of electricity generation based on the use of available coal resources, which the Government has identified as being underutilized with respect to the generation of electricity.

The demands likely to be placed on Indonesia's electricity supplies in the future are large and expose, at least potentially, some serious concerns about whether or not sufficient electricity can be supplied and whether this electricity can be supplied in the manner necessary to support public services.

The purpose of this Regulation, No. 26 of 2006, is to expedite the diversification of electricity away from reliance on fossil fuels and to raise the level of private investment in electricity. This second series of amendments are minor in number but significant with respect to regulating industry change.

A shift in Government energy policy towards greater levels of diversification in the sector means that there are increasing numbers of opportunities for will investors and entrepreneurs, and one such opportunity is in coal bed methane exploitation. To ensure certainty within the regulatory framework relating to coal bed methane the Minister of Energy and Mineral Resources (MoEMR) has issued Regulation No. 033 of 2006. This Regulation came into force on its confirmation, 22 May 2006.

This is the third in a series of Ministerial Regulations issued by the Minister of Energy and Mineral Resources (see ILBs 22/5/2006) and addresses the issue of how best to manage and exploit data gathered as part of a general survey. The basic provision of Article 15(2) of Government Regulation No. 35 of 2004 as amended by Government Regulation No. 34 of 2005 would require an implementing regulation to ensure implementation of the intent.

The Minister of Energy and Mineral Resources has issued Regulation No. 26 of 2006 as a means of implementing Presidential Instruction No. 5 of 2005 and to clarify the current regulatory framework on supply of fuels to the National Shipping Industry.

The permission to undertake a general survey is granted by the Minister to a business entity to complete specific activities related to the collection, analysis, and study of geological data to determine the potential of a specified area. These types of general surveys may also be geophysical or geochemical in nature and are to be under the direction of the Director General.

The President has finally forwarded the Bill on Electricity to the House of Representatives (DPR) for further debate and eventual enactment. The Minister for Energy and Mineral Resources has been appointed as the Minister responsible for all liaison with the DPR in the debate and enactment process.

The Minister of Energy and Mineral Resources (MEMR) has issued Regulation No. 002 of 2006 to facilitate the implementation of Article19 of MEMR Regulation No. 001 of 2006 (see ILB 21/02/2006). This Regulation only applies to the use of new energy for the generation of electricity.

The Minister of Energy and Mineral Resources has issued Regulation No.001 of 2006 (the ?Regulation?) the purpose of which is to perfect the perceived deficiencies in an earlier regulation of the same title, No. 009 of 2005. It is important to note that this is not an amendment regulation but a new regulation.