House approves electricity tariffs for PLN Batam, Kolaka Green Energy

The House of Representatives on Thursday approved the government's proposed electricity tariffs for state utility PT PLN Batam and PT Kolaka Green Energy, clearing the way for the Energy Ministry to set the rates.

The approval was granted during a hearing between House Commission XII, which oversees energy affairs, and Energy and Mineral Resources Minister Bahlil Lahadalia.

Commission Chairman Bambang Patijaya said the approval covered tariff proposals submitted by the ministry for PLN Batam and Kolaka Green Energy, as required under Indonesian law.

The commission approved the proposals unanimously, although the tariff levels were not disclosed during the hearing.

"Regarding this matter, I seek the approval of Commission members for the proposals contained in these two letters concerning PT Kolaka Green Energy and PT PLN Batam," Bambang said.

PLN Batam, a subsidiary of state electricity company PT PLN, supplies power on Batam Island and operates several diesel-fired power plants.

PT Kolaka Green Energy is developing power infrastructure at the Indonesia Pomalaa Industrial Park (IPIP) in Southeast Sulawesi, one of the country's major nickel processing hubs. The company broke ground on a 220-kilovolt transmission line and substation project in December 2025 to support electricity supply within the industrial park.

Earlier this year, Kolaka Green Energy signed a long-term electricity purchase agreement with PT Surelyrich Powerplant Indonesia to secure power for the industrial park. Company filings by Chinese shareholder Zhejiang Huayou Cobalt showed the agreement is backed by a performance bond worth $248.75 million.

Industry sources have said the power project is expected to involve a 2x250-megawatt captive power plant to supply the nickel processing complex, although the companies have not publicly disclosed its capacity.

Editing by Reiner Simanjuntak