President to issue new regulation to speed up power project development

President Joko Widodo is expected to issue a new presidential regulation to help accelerate the development of the planned 35,000 MW power plant projects, Kontan reported Monday.

The paper quoted Montty Girianna, a deputy at the Office of the Coordinating Minister for the Economy, as saying that the new regulation, which is expected to be completed end of November, will among others ease the procedure for state-owned electricity firm PLN in the procurement of goods and services for power projects.

?For example, if PLN wants to form partnership with (firms from) China or Japan, it would be given strong legal umbrella so that tender can be held quickly,? he said.

He added that the government will also provide guarantee for direct loans made by PLN to finance power projects.

Montty said that under the planned new presidential regulation, PLN officials will also be given legal protection in making decision to accelerate power project development so that they could not be easily criminalized.(*)