Gov't urged to issue electricity Law 30/2009 implementing regulation

Tuesday, September 20 2011 - 12:26 AM WIB

The head of the Indonesian Electrical Power Society (MKI), Djuniarman, called on the government to immediately issue a Government Regulation (PP) as a follow-up of the Electricity Law Number 30, 2009 that would allow local government companies to distribute electricity.

He said a number of regional governments such as Sorong, Nanggro Aceh Darussalam (NAD), Central Java, Central Kalimantan, East Kalimantan and South Sumatera are ready to issue local government regulations (perda) on electricity.

?We have reminded the government over the matter to formulate draft government regulation that will be signed by President. We have informed the government over enthusiasm of local governments,? he said.

He said local governments provincial and regency level, have expressed interest to establish local-government owned electricity company (BUMD) that will deal with the supply of electricity in regional areas, including holding the tender.

He said distribution of electricity may still be done by state utility company PT PLN.

He said it is regional areas that have primary energy such as coal, geothermal, oil and gas. They want to have local government owned companies like PLN on regional level. Local governments that will issue permit with regard to power supply. One potential benefits of this plan is that PLN will no longer become a single buyer for electricity.

The proposed government regulation will regulate issues related with distribution, transmission, and so on.

The head for distribution and service of PLN, Syarifuddin, said that in eastern Indonesia there are already private entities such as cooperatives that transmit electricity to consumers. However, some already decided to discontinue due to complexities in distributing electricity to consumers. Private entities in Lampung and East Lombok have stopped and asked PLN to distribute electricity to consumers.

Nevertheless, it depends on the government whether local governments will be given right to supply and distribute electricity. (giok/roffie)

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