Private firms may sell electricity at certain areas in Indonesia

Private groups may now sell electricity directly to the public in areas not reached by PLN.

Bambang Dwiyanto, Senior Manager of Corporate Communication at PLN, said that with the Governmental Decree No 14/2012 on Electricity Supply Activities, PLN is no longer the sole operator in supplying electricity in the country.

This was recently signed by Indonesia's President, Susilo Bambang Yudhoyono.

However, the government still provides main priority to state-owned enterprise to supply electricity for public interests. If the related enterprise cannot fulfill the given priority, the government will give it to region-owned enterprises, private entities with Indonesian legal entity, cooperatives and non-governmental organizations.

He expects that with such policy, the national electrification ratio can be enhanced. In 2011, it reached 72.03 percent compared to 2010’s 66.62 percent. “We also hope that private investors will be willing to enter remote areas," he said.

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