TEMPO.CO, Jakarta - The Energy and Mineral Resources Ministry announced its plan to improve regulations and simplify permit application procedures in a bid to prevent individuals to act as middlemen in the power generation business. To this date, the Ministry is still listing business stages that are vulnerable to brokerage services.

"We will simplify permit application procedures and apply online-based services," Energy and Mineral Resources Ministry spokesperson Sujatmiko told Tempo on Thursday, December 29, 2016.

Brokerage practices in power generation businesses had been reportedly the main cause of expensive electricity prices in Indonesia. Earlier on Tuesday, December 27, 2016, President Joko "Jokowi" Widodo revealed that electricity prices in Indonesia were not competitive compared to those in other countries.

According to Sujatmiko, the Ministry will promote a bureaucracy reform to free the power generation business from rent seekers.

"A regulation is being prepared to minimize brokerage practices in the power generation business," Sujatmiko said.

To this date, the government has reduced the number of permits in the power generation sector from 52 two 22. In addition, the length of time to issue those permits has been shortened from 923 days to 256 days. The Ministry also no longer has the authority to approve electricity purchase price agreed between state power company PLN and independent power producers, based on Energy and Mineral Resources Minister’s Regulation No. 3/2015.

Rida Mulyana, director general of new and renewable energy and energy conservation admitted that brokerage practices in the power generation sector were common. Rida revealed that some developers sold permits for power plant development to other developers.

ADITYA BUDIMAN | ROBBY IRFANI