House asked to speed up deliberation of electricity law

The government has formally asked members of the House of Representatives (DPR) to speed up the deliberation of the draft law on electricity so that the proposed law could be passed before the end of this year, Koran Tempo reported on Friday.

Director general of electricity at the ministry of energy and mineral resources Luluk Sumarso said in Jakarta on Thursday that the delay in the implementation of the new electricity law would affect the disbursement of foreign loan for the country?s electricity projects.

He cited that the Manila-based Asian Development Bank (ADB) had delayed the disbursement of its US$600 million loan until the new electricity law was passed by the House. Although after negotiations, ADB agreed to disburse $400 million of the loan, the disbursement of the other $200 million would be made only after the law is passed.

According to Sumarso, the delay could also affect the disbursement of loans from other lenders.

The proposed law which is now being deliberated by the House members will, among others, remove the exclusive rights of state electricity company PT PLN in the production, transmission and the retail sales of the electricity in the country. Under the bill, private companies are allowed to provide electricity services. (*)