Oct

06

Revision of The Power Plant Regulation in Indonesia

Revision of Electricity Support Services Regulation in Indonesia through Ministry of Energy and Mineral Resources enacted the Minister of Energy and Mineral Resources Regulation No. 12 of 2021

On 17th June 2021, the Ministry of Energy and Mineral Resources enacted the Minister of Energy and Mineral Resources Regulation No. 12 of 2021 regarding Classification, Qualification and Certification of Electricity Support Services (MR 12 2021) which revoked the Minister of Energy and Mineral Resources Regulation No. 38 of 2018 regarding Electricity Accreditation and Certification Procedures (MR 38 2018). This regulation revised many stipulations from the previous regulation, both minor and major, and we’ve compiled several noteworthy provisions.

Article 2 MR 12 2021 added the category of “other service businesses that are directly related with the supply of electricity” under the category of what is considered as Electricity Support Services, whereas MR 38 2018 strictly categorized what was classified as Electricity Support Services into what was listed in the regulation. The addition of “other services” opens up possibilities for pioneering new electricity support services.

MR 12 2021 also revised the parameter on how a business is classified as a large, medium or small business. MR 38 2018 measures by:
  1. level of business capability; and
  2. individual work skills
The level of business capability is based on:
  1. paid-up capital; and
  2. value limit of 1 (one) job.
While individual work expertise is classified based on:
  1. field;
  2. subfields; and/or
  3. specialization.
MR 12 2021 measured by:
  1. Technical Personnel Competence; and
  2. level of business capability
Competence of Technical Personnel is done in accordance with the provisions of the regulations regarding the Electrical Engineering Competence Standard. While the level of business capability is determined by:
  1. net worth; or
  2. annual sales results.
Electricity support service qualification is done to determine:
  1. the ability to carry out work simultaneously; and
  2. value limit of 1 (one) job
Another provision is the documents required to get an Operation-Worthy Certificate, holder electricity supply business license, utilization of medium-voltage and high-voltage electric power installation owner and operation permission holder. In MR 30 2018, two of the required documents are installation drawings and layout issued by a planning consulting service that has a business license for electricity support services, along with a one-line diagram issued by the agency electric power planner consulting service business that has a business license for electricity support services. But now, in MR 12 2021, holders of a public electricity supplier license, an electricity provision for own use license, and a utilization of medium-voltage and high-voltage electric power installation owner require an installation drawing and a one-line diagram that have more specification which are to be issued by:
  1. Consulting service business entity in the field of electrical power installation that has an electricity support services license, if there is no difference between design and electrical power installations built or installed; or
  2. Electrical power development and installation business entity that has electricity support services, if:
    1. The installation owner doesn’t have a picture of the installation and layout and one-line diagram issued by the consulting service with an electrical power installation license yet; or
    2. There is a difference between the electric power design and installation that is built or installed
Another revision is the administrative document requirement for Business Certification. Previously with MR 30 2018, the required documents were:
  1. business entity deed of establishment;
  2. business entity as a legal entity legalization;
  3. tax ID number; and
  4. balance sheet
Now, in MR 12 2021, it is the business entity’s balance sheet for a small business entity or balance sheet from a public accountant office that has a business license from the Ministry of Finance for a medium business entity and a large business entity must present an audit result.

Finally, there is a new provision on the prohibition of BoD and BoC of Engineer Inspection Agency, Low Voltage Engineering Inspection Institute, Technical Personnel Competency Certification Institute, Assessor Competency Certification Institute, or Business Entity Certification Institute becoming:
  1. a member of the board of directors or the equivalent of the board of directors;
  2. implementing organs ;
  3. commissioner; or
  4. supervisory body,
for other business entities that have the same business classification.

Those are amongst the many new provisions in MR 12 2021. Adjustments made in MR 12 2021 might feel unfamiliar if you do not know how to navigate it. Should you require help or consultation, please contact us via info@schinderlawfirm.com.

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