President issues regulation on energy crisis/emergency

President Joko Widodo had on May 4 issued Presidential Regulation No 41/2016 on procedures to determine and overcome energy crisis and, or energy emergency situation.

The new policy defines what constitutes an energy crisis or energy emergency situation. Energy products defined in the regulation includes petroleum fuel, electricity, LPG, and gas both for households consumption and transportation sector.

?Energy crisis is declared if the supply of minimum operational reserves or minimum requirement is anticipated to be unable to be fulfilled by the entities,? the regulation said.

Minister of Energy and Mineral Resources Spokesman Sujatmiko was quoted by Kontan as saying that the new regulation will help the ministry and the National Energy Council to take measures in helping to meet national energy security.

The new regulation also requires business entities engaged in the production and supply of energy in the country to play role in overcoming energy crisis or emergency including allocation of budget and the use of their facilities.

Editing by Reiner Simanjuntak