COUNTRY REPORTINDONESIA

THE HAPUAWorking Group No. 5 – ESI Services

Project No. 5 – Regulatory Issues and Challenges of Regulated

Entity/Owner/Investor and Consumers

INDONESIA ARCHIPELAGOS

Bengkulu

Bangka

Sumsel-Lampung

Pontianak

Banjarmasin

Tarakan

Minahasa

Kotamobagu

Palu Sorong

B-Aceh

Medan

Padang

BimaSumbawa

Kupang

AmbonSerui

Gorontalo

Jayapura

Mahakam

INDUSTRY STRUCTURE

SINGLE BUYER

CONSUMER

S

Basic Electricity Tariff

PSA (yearly)

PPA (yearly) PPA (long term)

TSA (yearly)

PLN TRANSMISSION

EXCESSPOWER (MV,LV)

PLN & IPP EMBEDDEDGENERATION

(MV)

EXCESSPOWER

(HV)

PLNGENCOs

IPPs

PPA (short term)

PPA (short term)

PPA (short term)

Transfer AgreementRENEWABLE

ENERGY (MV,LV)

Legend : - PPA = Power Purchase Agreement - PSA = Power Sales Agreement - TSA = Transmission Service Agreement

PLNGENERATION

PPA (short term)

PLN DISTRIBUTION

REGULATORY ENVIRONMENT & FRAMEWORK

• Indonesian Principal Law : UUD 1945• Electricity Act : UU No. 15, 1985• Government Regulation• Precidential Regulation• Precidential Decree• Ministry Regulation• Director of Jenderal Decree

The Regulatory Hierarchy of Electricity :

INDUSTRY REGULATIONS

• Adequacy of Supply– Government Regulation (PP No. 26, 2006)

• Security, Quality & Reliability – Government Regulation (PP No. 26, 2006 & regulated in SNI)

• Performance of efficiency– Government Regulation (PP No. 26, 2006 & regulated in SNI)

• Electricity Acceleration Project :– Precidential Regulation No. 91, 2007 (10,000 MW)

• Regulation for State Owned Enterprises– UU No. 19,2003 (PSO)

INDUSTRY REGULATIONS

• Safeguarding consumer interest : – UU No. 8, 1999 – Government Regulation (PP No. 26, 2006)

• Tariff Setting : Precidential Decree on Basic Electricity Tariff• Electricity Planning : – UU No. 15, 1985 (RUKN) – UU No. 10, 1986 (RUPTL)

BEST PRACTICES in REGULATION

• Grid Code• Distribution Code

CHALLENGES in REGULATION

• Electricity Act No. 20/2002 had no longer exist• The new regulation (substitution of Electricity

Act 20/2002) is being discussed by government and the parliament. The possibility to implement regionalism and restructuring still opened

Thank You