Indonesia: Electricity Bill (Law no. 20/2002)

Although the restrucutring of the electricity sector in Indonesia began in the late 1990s, the Electricity Bill, which outlined the path toward a liberalized electricity sector, was not passed until 2002. This legislation included measures to facilitate the privatization of the sector, introducing a multi-seller/multi-buyer system. It also stipulated the social and environmental responsibilities of power producers, such as requring a certain percentage of renewable energy used and a percentage of electricity provided to the poor. It was annulled by the Constitutional Court in 2004 because it was seen to be not in line with the Constitution. The Government of Indonesia will draft a new law, but in the meantime, the Electricity Law no. 15/1985 has been reenacted. However, the contracts made under Law no. 20/2002 whereby private investors producing power sell to PLN are still valid, and these transactions are regulated by Government Decree no. 3/2005.

Date Implemented: 2002

Status: Ended

References: National Communication to the UNFCCC