INDONESIA: Law No. 30/2009 of 2009 on Electricity

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Effective Start Year: 
2009
Scope: 
National
Document Type: 
Law
Economic Sector: 
Power
Energy Types: 
Power, Renewable
Issued by: 
President of the Republic of Indonesia
Source: 
Ecolex
File: 
Law No. 30/2009 of 2009 on Electricity
Overall Summary: 
The Law No. 30/2009 of 2009 provides rules for the development, generation and distribution of electricity.
Access
Bi-, multi-lateral mechanisms to expand access: 
To conduct the supply of electrical power [...], the Government and regional governments shall provide funds for a. groups of low-income people; b. development of facilities for the supply of electrical power in least developed regions; c. development of electrical power in remote and border areas; and d. development of rural electricity.
Energy access priorities: 
[E]Iectrlcal power plays a very important and strategic role in achieving the goals of the national development and therefore, the supply of electrical power is controlled by the state and must constantly be increased in line with development growth to ensure that electrical power will be evenly available inadequate quantities with high quality;---The development of electricity shall be aimed at ensuring the availability of electrical power in adequate quantities, with good quality, and at reasonable prices as part of efforts to improve the welfare and prosperity of the people in aj ust and evenly manner as well as to sustainable development.---Consumers shall have the right to: a. receive good services; b. get contnuous electrical power of good quality and reliability; c. receive electrical power to which they are entitled at reasonable prices; d. get repair services in case of electrical power disturbance; and e. receive compensation in case of bIackout caused by errors and/or carelessness on the part of the holder of permits for the supply d electrical power according to the conditions set in the electrical power sales purchase agreement.
Energy access action plan: 
For the areas which have not enjoyed electricity, the Government or regional governments shall, according to their respective authority, give a chance to regional government-owned companies, Private corporate bodIes, or cooperatives as the operator of business in the supply of electrical power in an integrated way.
Consumer subsidies: 
To conduct the supply of electrical power [...], the Government and regional governments shall provide funds for a. groups of low-income people; [...].
Renewable Energy
RE priorities: 
The use of primary energy sources [...] shall be done by prioritizing new energy and renewable energy sources.
Environment
Land use change for energy production purposes: 
The use of land [...] shall require the holders of permit for the supply of electrical power to provide land compensation or compensation to the holders of rights to the land, buildings, and plants according to the law.
Pricing
Energy pricing: 
The selling prices of electrical power and the rents of electrical power networks shall be set under the principles of sound business.[...]---The Govemment shall, according to its authority,set the tariffs of electrical power for consumers with the approval of the House of Representatives of the Republic of Indonesia. [...] The tariffs of electrical power for consumers [...] shall be set by observing the balance between the interests of nation, regions, consumers and business agents engaged in the supply of electrical power. The tariffs of electrical power for consumers [...] can be set differently for each in one business area.
Energy Supply and Infrastructure
Energy supply priorities: 
Primary energy sources found at home and/or originating from abroad shall optimally be taken advantage of according to the national energy policies to ensure the supply of electrical powerIna sustainable way. [...] The use of primary energy sources [...] shall be done by prioritizing new energy and renewable energy sources. The use of primary energy sources found at home [...]shall prioritize the interests of national electricity.
Investment
Financial incentives for energy infrastructure: 
To conduct the supply of electrical power [...], the Government and regional governments shall provide funds for a. groups of low-income people; b. development of facilities for the supply of electrical power in least developed regions; c. development of electrical power in remote and border areas; and d. development of rural electricity.
Local content requirement: 
In conducting the electrical power supporting service businesses, state-owned companies, regional government owned companies, private corporate bodies and cooperatives shall prioritize domestic products and potentials.
Governance
Energy management principles: 
[E]Iectrlcal power plays a very important and strategic role in achieving the goals of the national development and therefore, the supply of electrical power is controlled by the state and must constantly be increased in line with development growth to ensure that electrical power will be evenly available inadequate quantities with high quality;---[T]he supply of electrical power is capital-and technology-intensive business and is In line with the principles of regional autonomy and democratization in the communityhood, nationhood and statehood order and therefore, the role of regional governments and communities in the supply of electrical power needs to be Intensified;---besides being useful, electrical power may be dangerous and therefore, the supply and use of electrical power must observe provisions on electricity safety.---The development of electricity shall adhere to the principles of: a. benefit; b. justice-based efficiency; c. sustainability; d. optimizing the economy In the use of energy resources; e. relying on own capacity; f. sound business practice; g. security and safety; h. environmental conservation; and i. regional autonomy.---The supply of electrical power shall be controlled by the state and conducted by the Government and regional governments based on the principles of regional autonomy.---The supply of electrical power by the Government and regional governments shall be conducted by a state owned company and regional government-owned companies. Private corporate bodies, cooperatives, and seIf-supporting communities can participate In the supply of electrical power.---The supply of electrical power for pubic interests [...] can be conducted in an Integrated way. The supply of electrical power for public interests [...] shall be conducted by 1 (one) corporate body in 1 (one) business area.---The supply of electrical power for publicInterests as referred to In ArtIcle 10 paragraph (1) shall be conducted by state-owned company, regional government owned companies, private corporate bodies, cooperatives, and self-supporting communities engaged in the supply of electrical power. (2) The state company [...] shall be given the first priority to conduct the supply of electrical power for public interests. [...]. For the areas which have not enjoyed electricity, the Government or regional governments shall, according to their respective authority, give a chance to regional government-owned companies, Private corporate bodIes, or cooperatives as the operator of business in the supply of electrical power in an integrated way.[...]---The electrical power-supporting service businesses as referred to in paragraph (1) shall be conducted by state owned companies, regional government-owned companies, private corporate bodies, and cooperatives having certificates, classifications and qualifications according to the law.
National policy structure: 
To conduct the supply of electrical power as referred to in paragraph (1), the Government and regional governments shall, according to their respective authority, set policies on, regulate, supervise and conduct the supply of electrical power.---1) The general plan for national electricity shall be drawn up based on the national energy policies and endorsed by the Government after consulting the House of Representatives of the Republic of Indonesia. [...] The general plan for national electricity [...] shall be drawn up by involving regional governments.