GOVERNMENT REGULATION OF THE REPUBLIC OF INDONESIA NUMBER: 14 OF YEAR 2012

For those who are engaged in power plant development, I would further like to share the following main points from the above subject:

-          Integrated electricity production, distribution, and sale shall be done in 1 (one) business region by 1 (one) business entity.
-          The business entity covers state owned companies, provincial government owned companies, Indonesian legal entity private companies, cooperatives, and public self efforts engaged in electricity supply.
-          In case of state owned companies can not accept the priority given, the Minister, governor, or mayor in accordance with their authorities shall give the opportunity to provincial government owned companies, Indonesian legal entity private companies, cooperatives, or public self efforts to supply the electricity.
-          The efforts to supply electricity for public consumption shall be done in accordance with National Electricity General Plan and Electricity Supply Business Plan.
-          Electricity supply business licence may be given for the period of at the longest 30 (thirty) years subject to extension.
-          In case of electricity supply business licence is applied for generation, apart from fulfilling technical requirements it should also be equipped with Power Purchase Agreement between the applicant and the electricity prospective buyer.
-          Electricity supply business plan should be prepared by the applicant by taking into account national electricity general plan.
-          Electricity supply business plan shall be used by electricity supply business licence holders as guidelines in running electricity supply business activities.
-          Electricity supply business licence holders should notify customers at the latest 24 (twenty four) hours in advance before electricity supply temporary stoppage.-          Electricity supply business licence holders should use domestic products and potentials in accordance with the prevailing laws and regulations.