On 12 February 2018, the Minister of Energy and Mineral Resources (the “MEMR”) issued Regulation Number 10 of 2018 on The Second Amendment to Minister of Energy and Mineral Resources Regulation Number 10 of 2017 on the Principles of Power Purchase Agreements (“MEMR Reg 10/2018”) which came into effect on 13 February 2018. As a brief background, Minister of Energy and Mineral Resources Regulation Number 10 of 2017 on the Principles of Power Purchase Agreements (”MEMR Reg 10/2017”) sets out the principles of power purchase agreements (“PPA”) between PT PLN (Persero) (“PLN”) as the purchaser and Independent Power Producers (“IPP”) as the seller in the electric power system. This regulation covers the commercial aspects of every type of IPP power plant, which previously depended on negotiations between the parties, save for certain requirements under the prevailing laws and regulations (eg the electric power purchase price). MEMR Reg 10/2017 was amended previously by Minister of Energy and Mineral Resources Regulation Number 49 of 2017 on An Amendment to Minister of Energy and Mineral Resources Regulation Number 10 of 2017 on the Principles of Power Purchase Agreements (“MEMR Reg 49/2017”).
