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COUNTRY REPORT INDONESIA. THE HAPUA Working Group No. 5 – ESI Services Project No. 5 – Regulatory Issues and Challenges of Regulated Entity/Owner/Investor and Consumers. INDONESIA ARCHIPELAGOS. B-Aceh. Medan. Tarakan. Minahasa. Gorontalo. Kotamobagu. Pontianak. Padang. Sorong. Palu.
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COUNTRY REPORTINDONESIA THE HAPUA Working Group No. 5 – ESI Services Project No. 5 – Regulatory Issues and Challenges of Regulated Entity/Owner/Investor and Consumers
INDONESIA ARCHIPELAGOS B-Aceh Medan Tarakan Minahasa Gorontalo Kotamobagu Pontianak Padang Sorong Palu Serui Mahakam Bangka Ambon Bengkulu Jayapura Banjarmasin Sumsel-Lampung Kupang Sumbawa Bima
INDUSTRY STRUCTURE EXCESS POWER (HV) PLN GENERATION PLN GENCOs IPPs PPA (long term) PPA (yearly) PPA (short term) SINGLE BUYER PLN TRANSMISSION TSA (yearly) Transfer Agreement PSA (yearly) RENEWABLE ENERGY (MV,LV) PLN DISTRIBUTION PLN & IPP EMBEDDED GENERATION (MV) PPA (short term) EXCESS POWER (MV,LV) PPA (short term) Basic Electricity Tariff CONSUMERS PPA (short term) Legend : - PPA = Power Purchase Agreement - PSA = Power Sales Agreement -TSA = Transmission Service Agreement
REGULATORY ENVIRONMENT & FRAMEWORK The Regulatory Hierarchy of Electricity : Indonesian Principal Law : UUD 1945 Electricity Act : UU No. 15, 1985 Government Regulation Precidential Regulation Precidential Decree Ministry Regulation Director of Jenderal Decree
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