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Establishing a Power Station Operation and Maintenance (“O&M”) Service Business in Indonesia

To conduct O&M Service for Power Station business, the company should obtain an Electric Power Supporting Services Business License (Izin Usaha Jasa Penunjang Tenaga Listrik – IUJPTL). The requirement by law in Indonesia to get the IUJPTL is regulated under Article 31 paragraph 1 letter (d) and (e) of Government Regulation in Indonesia Number 25 of 2021 regarding the Implementation of Energy and Mineral Resources (“PP 25/2021”).

According to the PP 25/2021, a state-owned enterprise, regional-owned enterprises, private enterprises, public service agencies, and cooperatives may engage in the electric power support services business upon obtaining :

  1. (i) an Electric Power Support Service business license; and
  2. (ii) a Business Entity Certificate for the electric power support services business.

Private enterprises that provide electric power support services can be in the form of:

  1. a legal entity established under the prevailing laws;
  2. a non-legal entity that has been registered with the MOLHR; or
  3. a foreign representative office established by a foreign entity or foreign individual that provides electric power support services.

The electric power support services business consists of:

  1. consultancy in the field of electric power installation;
  2. construction and installation work for an electric power installation;
  3. inspection and testing of an electric power installation;
  4. operation of the electric power installation;
  5. maintenance of electric power installation;
  6. research and development;
  7. education and training;
  8. electric power utility and equipment testing laboratories;
  9. electric power user and equipment certification;
  10. electric power engineering personnel competency certification;
  11. electric power support service business entity certification; and
  12. other service businesses directly related to the provision of electric power.

General requirements that apply to Foreign Representative Offices for electric power support service businesses in Indonesia

A foreign representative office can only obtain a business license for an electric power support services business in the following areas:

  1. consultancy in the field of Electric Power Installations;
  2. the construction and installation of Electric Power Installations; and
  3. the maintenance of Electric Power Installations.

GR 25/2021 restricts foreign representative offices to working on high-cost electric power support services that satisfy the following requirements:

  1. The construction and installation work for an electric power installation must have a value of at least IDR 100,000,000,000.00; and
  2. Any consultancy work in electric power installation or the maintenance of an electric power installation must have a value of at least IDR 10,000,000,000.00.
To do so, a foreign representative office must, among other things, establish a joint operation with a domestic electric power support services business entity that satisfies the following requirements:
  1. It is a limited liability company;
  2. One hundred per cent of its shares are held by individual Indonesian citizens, the Republic of Indonesia, regional governments, private companies, state-owned 2. companies, region-owned companies, or cooperatives;
  3. It must have a business entity certificate with large-scale business qualifications; and
  4. It must have a license to provide electric power support services.

How Schinder can Help

Schinder Law Firm is a leading corporate law firm in Indonesia, practicing Indonesian Company Law and Indonesian Investment Law. Our team of corporate lawyers in Indonesia and investment lawyers has forged a reputation for assisting various clients across the globe. As Indonesian business lawyers, we have extensive experience providing services in company registration, obtaining a mandatory business license and providing legal consultancy services. Following the O&M Service Business for Power Station, we have been entrusted by a dozen multinational companies to obtain all the mandatory licenses and have been appointed as a permanent legal consultant to help them deal with daily legal matters.

Shall you have any inquiries related to this article, please feel free to contact us at info@schinderlawfirm.com.

Author: Budhi Satya Makmur

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Data is a valuable currency in this new world. In the midst of digital transformation, the Indonesian government has taken the final decision to pass the Pelindungan Data Pribadi (PDP) Bill by September 2022. The PDP Law applies to all businesses established in Indonesia and puts the consumer in control. The task of complying with this regulation falls upon businesses.

The PDP Law affects a variety of business operations, including how your sales team prospect and how marketing initiatives are managed. Businesses have had to reassess their business procedures, applications, and forms. Additionally, all businesses that work with personal data should designate a Data Protection Officer (DPO) or data controller to oversee PDP compliance.

In line with this spirit, it gives us great pleasure to announce and share with all our esteemed clients and business associates that Schinder Law Firm is prepared to assist your company to understand the impacts of the Personal Data Protection Law (PDPL) and take the required measures to comply with the law. Our Privacy, Data Protection, and Cybersecurity practice group is a pioneer in providing data privacy law services in Indonesia. Personal data protection services include but are not limited to:

  • Assessing the existing systems, processes, and controls, etc.
  • Providing provide gap assessment on the existing systems, processes, and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDP Law
  • Developing policies, best practices, and procedures
  • Advising on the security of personal data and managing data breaches
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role, and responsibilities of a data protection officer
  • Advising on cross-border transfers of personal data
  • Carrying out data protection impact assessments and data protection audits
  • Recommending other necessary corrective actions in order to comply with the PDP Law
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Keep Up with the New Law in Indonesia: Personal Data Protection

  • Assessing the existing systems, processes and controls, etc.
  • Providing provide gap assessment on the existing systems, processes and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDPL.
  • Developing policies, best practices and procedures.
  • Advising on security of personal data and managing data breaches.
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role and responsibilities of a data protection officer.
  • Advising on cross-border transfers of personal data.
  • Carrying out data protection impact assessments and data protection audits.
  • Recommending other necessary corrective actions in order to comply with the PDPL.
  • Training on the PDPL tailored to clients’ businesses.
Privacy, Data Protection and Cyber Security
We help our clients to understand the impact of the Personal Data Protection Law (PDPL) on their companies and take the required measures to comply with the law.
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