Electricity Entrepreneurs Pessimistic Pruning Electrical Regulation Able to Push Investment

By : Hariyanto And Aldo Bella Putra | Wednesday, February 14 2018 - 18:00 IWST

Pembangkit Listrik
Pembangkit Listrik

INDUSTRY.co.id - Jakarta - The Association of Micro Hydro Power Plants (APLTMH) wants various regulations that hamper immediately discarded. APLTMH Chairman Riza Husni said the electricity businessman is pessimistic that the new Minister of Energy and Mineral Resources (ESDM) policy is able to encourage investment.

The reason, the regulation of trimmed electricity is a regulation that is no longer valid. "We are pessimistic that we can encourage the investment of electricity because the regulation that is cut is a regulation that is no longer valid," said Riza in Jakarta on Tuesday (13/2/2018)

He said there are two rules that are no longer valid, namely the Regulation of the Minister of Energy and Mineral Resources No. 19 of 2015 and Ministerial Regulation No. 19 of 2016. The two rules are already not applicable and replaced with Regulation of the Minister of Energy and Mineral Resources No. 50 of 2017.

According to him, should Minister of Energy and Mineral Resources Ignatius Jonan cut a series of regulations that still apply and openly complicate investors and made since Jonan became minister in ESDM.

For example, he pointed out, Minister of Energy and Mineral Resources Regulation No. 50 of 2017. This rule makes investors and finance institutions are not interested in investing into electricity because there is a scheme of delivery of assets when the contract expires ("build, own, operate, and transfer" / BOOT).

This scheme is considered to make private power producers will lose assets because the assets will not be his. "In fact, the land to build the plant is from the company, also the tariff is not subsidized, taxes must be paid, and the interest of the bank is high, there are high social and environmental risks No entrepreneurs are interested," he said.

Riza is of the opinion that by becoming an asset of PT Perusahaan Listrik Negara (Persero) / PLN, developers have difficulties in finding sources of financing, and then ESDM Minister should revoke Ministerial Regulation No. 50 year 2017.

Previously, the Ministry of Energy and Mineral Resources (ESDM) again simplified the regulation by revoking 22 regulations that are considered irrelevant and hampering the investment process.

The reduction of this regulation is done to encourage investment, according to President Joko Widodo's direction. There was previously Minister Jonan has also revoked 32 regulations in the last week, so the total regulations are revoked to date there are 52 regulations.

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