Govt to issue new regulation on independent power providers

The government is drafting a new regulation to give legal certainty to private companies involved in providing electricity supply in the country, Suara Karya reported on Wednesday.

Director General of Electricity and Energy, Yogo Pratomo, said in Jakarta on Tuesday that the draft on the new governmental regulation had been submitted to the State Secretariat for approval.

"The new governmental regulation will among others regulate the licensing procedures in providing power supply and partnership with state electricity company PLN," he was quoted as saying.

With the new regulation, private investors that provide electricity supply to the public will be able to become a majority shareholder, he said.

"At present, they cannot become a majority shareholder, because they have to cooperate with PLN in providing electricity to the public," he added. (*)