Regional Electricity Plans have been Determined in 7 Provinces, Says Official

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 401.Pers/04/SJI/2021

Date: 11 November 2021

Regional Electricity Plans have been Determined in 7 Provinces, Says Official

Seven provinces have determined Regional Electricity General Plans (RUKDs). These provinces are West Nusa Tenggara, North Kalimantan, Central Java, East Kalimantan, Central Sulawesi, Bali, and Lampung, Secretary of Directorate General of Electricity of the Ministry of Energy and Mineral Resources (EMR), Munir Ahmad, has said during a webinar titled "Dissemination on the Procedures for Formulating RUKD and RUPTL, and Reporting RUPTL" held on Thursday (11/11).

The government through the Ministry of EMR has continuously encouraged the determination of RUKDs because these documents form the basis for the update on the National Electricity General Plan (RUKN), continued Munir.

"Regional governments participate in the formulation of Electricity General Plan via two mechanisms: one, through the formulation process of the RUKN and two, via the RUKD," said Munir.

Munir went on to explain that electricity planning, be it RUKN, RUKD, and RUPTL, has a basis on assumptions and targets. For this reason, evaluation and periodic updates should be made if the assumptions and targets differ significantly with realization.

Munir further said that the policies regulate that the minister determines RUKN, governors determine RUKDs, and the minister or governor validates the RUPTL (electricity supply general plan) according to the authority. This shows that electricity is controlled by the state.

On the same occasion, Director of Electricity Program Fostering, Jisman Hutajulu, said the Ministry of EMR expected provincial energy service offices would immediately determine RUKDs because the RUKDs would form the RUKN, which is the reference for preparing the RUPTL.

In a similar vein, Coordinator for Electricity Program Preparation Husni Safruddin said that due to the changes in assumptions of economic growth, realization of electricity sales in business areas, and regulations, Business Areas developers were expected to immediately adjust and submit validation proposals of amended RUPTL of their respective business area.

There are currently 55 Business Areas developers, and, according to regulations, these developers are required to prepare RUPTL and report on the realization on a regular basis.

The procedures for preparing and reporting RUPTL are set out in Government Regulation Number 5 of 2021 on the Management of Risk-Based Business Licensing, Government Regulation Number 25 of 2021 on the Management of the Energy and Mineral Resources Sector, Regulation of Minister of EMR Number 5 of 2021 on Business and Product Standards for the Management of Risk-Based Business Licensing in the the Energy and Mineral Resources Sector, and Regulation of Minister of EMR Number 11 of 2021 on the Implementation of Electricity Business.

"Fostering and monitoring of RUPTL realization is one of the government's efforts to ensure that we can fulfill the 23% target for new, renewable energy share by 2025 according to the KEN (national energy policy) and the RUKN," said Subcoordinator for Electricity Supply Program Evaluation, M. Kuncoro, one of the resource people in the webinar.

"I would like to reiterate that synchronized planning in electricity subsector is crucial, especially to prevent oversupply or undersupply which will impact on efficiency and costs of electricity generation," Munir concluded. (IY)

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