Govt Amends Laws Considered Hindering Electricity Projects
4 March 2015 14:08 WIB
TEMPO.CO, Jakarta - The government is changing a number of regulations as a way to support its 35,000 megawatts (MW) power plant project, especially overlapping rules on natural resources management that have been hampering the project's continuity.
To that end, the Ministry of Energy and Mineral Resources has signed an agreement with several other ministries.
According to Energy Minister Sudirman Said, one of the rules that will be amended is the Forestry Law, which prohibits all kinds of activities in protected forest. This rule, Sudirman said, is hindering the development of geothermal power plants, as more than 60 percent of Indonesia's geothermal reserves are located in protected and conserved forests.
Endro Yulianto, deputy manager of PT PLN Distribusi West Java and Banten, said the company is facing difficulties in developing power projects because of overlapping rules, mostly on land use and acquisition.
In a discussion earlier this week, PT Sumberdaya Sewatama—an independent power producer working on power projects in Sulawesi and Karimun Jawa, claimed they mostly stumble upon land acquisition problems. Corporate secretary Nadia Diposanjoyois hoping for absolute support from the government, so that the transmitter projects can be finalized on time.
ROBBY IRFANI | FAIZ NASHRILLAH