Govt pledges to issue new electricity law as requested by ADB

The government has pledged to introduce a new electricity law to meet the request of the Manila-based Asia Development Bank.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said in Jakarta on Wednesday that ABD had requested the Indonesian government to introduce a new electricity law in return for the bank?s 600 million soft loans.

Speaking at a break during a hearing with the Commission VII of the House of Representatives (DPR), Purnomo said that the law was being prepared and it would be submitted to the House for approval as soon as possible.

He said that the government expected to introduce the law this year but without the approval from the House members it would be impossible to introduce the law as scheduled.

ADB has pledged to provide a standby loan of up to $600 million to help finance the restructuring of the country?s electricity, which will be made in four stages. The first stage of the restructuring program will include the sales and purchases of electricity by PLN, the second stage will related the removal of PLN?s monopoly, the three stage will cover distribution and transmission and the four stage will be related to the establishment of multi sellers and multi buyers.

But Purnomo said that completing the restructuring program would take time and he was pessimistic if the program could be completed by the year 2003.(*)