Regions to be given authority to manage power supply

The Ministry of Energy and Mineral Resources will give authority to some regional governments in the eastern part of Indonesia to manage electricity supply in their respective regions, cutting down the role of state-owned electricity firm PT PLN.

The regions include Papua, West Papua, Muluku, North Maluku, West Nusa Tenggara, and East Nusa Tenggara.

Minister of Energy and Mineral Resources Sudirman Said stated Wednesday that the Electricity Law allows for the ministry to transfer the authority in power supply management to regional governments.

He said that the move is expected to increase electrification ratio in the eastern part of Indonesia region, which currently stands at an average 79 percent, far below the national average of 87.7 percent.

Director General of Electricity Jarman said that according to the plan, provincial and regency administrations can appoint regional government-owned companies to manage power supply in their respective regions. These companies can work with private companies to build power plants, transmissions, and distribute electricity to consumers.

The regional governments can also determine the price of electricity in their regions. (*)