No Longer Alot, The Ministry Of Energy And Mineral Resources Of The Presidential Regulation Of EBT Makes Electric Negotiations Between PLN And Private Not Eating Long Time

JAKARTA - President Joko Widodo has signed a regulation regarding new and renewable energy (EBT) through Presidential Regulation (Perpres) Number 112 of 2022 concerning the Acceleration of Renewable Energy Development for the Provision of Electric Power.

This regulation was signed by President Jokowi on September 13, 2022 and will take effect from the date of promulgation on the same date when the President was appointed.

Director General of New Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources Dadan Kusdiana said, with this Presidential Regulation, later negotiations on electricity rates between PLN and private electricity developers or Independent Power Producers will no longer take a long time because it has been regulated by the government.

"Later it will not take too long for developers with PLN to negotiate, so we will continue to ensure that this project runs and this side of risk will be the main concern," Dadan said at a press conference in Jakarta, Friday, October 7.

One of the articles containing this is Article 5 paragraph 1 which states that the purchase price of electricity from the EBT plant by PLN consists of:

a. The highest benchmark price is an inseparable part of this Presidential Regulation.

b. The price of the deal, with or without taking into account the location factor (F).

Article 5 paragraph 3 reads, "The price for purchasing electricity as referred to in paragraph (1) is the price used in PJBL and is valid since the COD (Commercial Operation Date)."

Meanwhile, in paragraph 4 it is stated that "The price for purchasing electricity as referred to in paragraph (1) letter a will be evaluated annually since this Presidential Regulation comes into effect taking into account the latest average contract price of PT PLN (Persero)."

In his remarks, Dadan also revealed that currently his party is preparing new rules regarding the Electricity Purchase Agreement (PJBL) between the New Renewable Energy IPP (EBT) and PLN. "The theme will be prepared directly by PLN bilaterally so that the aspect of sustainability and still ensures that this project can run quickly," continued Dadan.

Dadan further hopes that with this Presidential Decree, green investment on the power plant side and the browser industry will grow.

"At least three investments will grow, for the generator of EBT, investment in the supporting industry and increasing investment in green industry," concluded Dadan.