Business Media Selected for You: February 2018
09 March 2018
Energy and Natural Resources
The Ministry of Energy and Mineral Resources (MEMR) to revoke 32 regulations
The MEMR is revamping and simplifying its regulatory framework in the energy and natural resources sector. Soon to be revoked regulations include (i) 11 from the Directorate General of Oil and Gas (regulations related to work safety, marginal oil field development, expatriate employment, management of state facilities in upstream operations); (ii) 7 from the Directorate General of Minerals and Coal (regulations related to supervision, permit issuance, project location); (iii) 7 from the Directorate General of Renewable Energy (regulations related to power purchase from hydropower and photovoltaic power plants with capacity under 10 MW); (iv) 4 from the Directorate General of Electricity (regulations related to electricity installations, electricity prices, transmission requirements).
Regulations comprise of:
MEMR Regulation Number 0008/2005;
MEMR Regulation Number 0044/2005;
MEMR Regulation Number 02/2008;
MEMR Regulation Number 04/2012;
MEMR Regulation Number 06/2010;
MEMR Regulation Number 11/2009;
MEMR Regulation Number 13/2012;
MEMR Regulation Number 14/2016;
MEMR Regulation Number 18/2012;
MEMR Regulation Number 19/2015;
MEMR Regulation Number 19/2016;
MEMR Regulation Number 21/2016;
MEMR Regulation Number 22/2008;
MEMR Regulation Number 22/2016;
MEMR Regulation Number 26/2006;
MEMR Regulation Number 31/2013;
MEMR Regulation Number 33/2008;
MEMR Regulation Number 51/2017;
MEMR Decree Number 1454 K/30/MEM/2000;
Minister of Mines and Energy (MME) Regulation Number 02/1975;
MME Regulation No 02.P/451/M.PE/1991;
MME Regulation Number 03.P/451/M.PE/1991;
MME Decree Number 2555.K of 1993;
MME Decree Number 103.K/008/MPE/1994;
MME Decree Number 2202.K/201/MPE/1994;
MME Decree Number 620.K/008/MPE/1994;
MME Decree Number 134.K/201/MPE/1996;
MME Decree Number 135.K/201/MPE/1996;
MME Decree Number 1614 of 2004;
Guidelines on Operating Procedures (GOP) Number 012 of 2007;
GOP Number 013 of 2007; and
GOP Number 037 of 2017.
Government Regulation Number 8/2018 (the fifth revision to Government Regulation Number 23/2010) was issued recently and allows PLN to buy coal from domestic miners at a discounted price, even at the expense of state revenue. The new regulation shall serve as the basis for setting a fixed price for coal supplied to PLN (under the domestic market obligation). The MEMR is to pass a regulation and a decree to this effect by the end of March. Coal may be priced at USD 70 per ton.
The Government has announced it will transfer 57% of its shares from Perusahaan Gas Negara to Pertamina. This will transform Pertamina into a holding company and give the Government a head start in implementing its domestic price reforms.
Independent Power Producers (IPPs) are to get more business certainty as the Government has scrapped the much-criticized force majeure clauses in Power Purchase Agreements (PPAs) with PT PLN through MEMR Regulation Number 10/2018.
Ministry of Trade Regulation Number 82/2017 set to take effect by the end of April requires coal and crude palm oil exporters to use domestic shipping firms and insurers.
Compiled from the Jakarta Post.
Aston Goad - Foreign Legal Consultant, Indonesia : firstname.lastname@example.org
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Sasha Bharwani - Foreign Associate, Indonesia : firstname.lastname@example.org
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