TEMPO.CO, Jakarta - The Ministry of Energy and Mineral Resources will establish a policy to lower the monopoly of electricity network construction by state power company PT PLN (Persero). The government plans to reopen the chance for regionally owned enterprises (BUMN) and private companies to procure transmission and distribution network projects.
"Last night we revealed this plan to PLN. Hopefully they can accept it," said Energy Secretary Sudirman Said during a meeting with the House of Representatives' (DPR) Energy Commission in Jakarta, yesterday.
Later, the Ministry of Energy will release PLN of its obligations to provide transmission and distribution networks in six provinces: West Nusa Tenggara (NTB), East Nusa Tenggara (NTT), Papua, West Papua, Maluku and North Maluku; which are areas with the lowest electrification rate in Indonesia.
Jarman, Director General of Electricity, said the provision of electricity for the six provinces will use islands-method, since these provinces are located far away from PLN headquarters in Jakarta.
"The approach cannot be centralized as it is now," he said.
Jarman said that this plan is not against the Electricity Law, since the designation of the electricity supply business is under the authority of Energy Ministry.
Re-allowing REOs and privates to invest in electricity supply in those six areas will be regulated under the Regulation of the Minister of Energy.
Agung Wicaksono, deputy of National Electricity Development Acceleration Unit (UP3KN), said that the construction of electricity networks in those six provinces will be done in coordination with PLN, mainly for network and household installations.
PLN does not object to this plan. The company's senior manager of public relations Agung Murdifi said PLN will continue to develop electricity grids by adhering to and complying with the government's plan and regulations. Based on regulations, PLN will be given the first priority to provide electricity. The form of the organization is left entirely to the government as a regulator.
ROBBY IRFANY
