Legal UpdatesPublicationsChanges to the Power Sector Licensing Scheme Following the Enactment of OSS System

On August 13, 2018, the Minister of Energy and Mineral Resources of the Republic of Indonesia issued Regulation of the Minister of Energy and Mineral Resources Number 39 of 2018 concerning Electronically Integrated Business Licensing Services for the Power Sector (“MEMR 39/2018”). This regulation is issued as an implementation of Article 88 paragraph (1) of Government Regulation Number 24 of 2018 concerning Electronically Integrated Business Licensing Service. This regulation covers the adjustments for: the type and sub-field of business, the applicant for business licensing, the business licensing process, and the parties having the authority to issue licenses in OSS System.

In OSS System there are two types of licenses, namely Business License (Izin Usaha) and Commercial/ Operational Licenses (Izin Komersial/Operasional). Business license (Izin Usaha) in power sector in the OSS system consists of the Business License for Power Supply (Izin Usaha Penyediaan Tenaga Listrik (IUPTL)), Operation License (Izin Operasi), Establishment of Business Areas (Penetapan Wilayah Usaha), Cross-Country Power Buying and Selling Business License (Izin Usaha Jual Beli Listrik Lintas Negara), Power Support Services Business License (Izin Usaha Jasa Penunjang Tenaga Listrik), and Telematics IPJ (IPJ Telematika). Meanwhile, Commercial/Operational License (Izin Komersial/Operasional) consists of Operation-Worthy Certificates (Sertifkat Laik Operasi), Business Entity Certificates (Sertifikat Badan Usaha), and Certificate of Competence of Power Engineering Personnel (Sertifikat Kompetensi Tenaga Teknik Ketenagalistikan). The party who can apply for these licenses is an individual and non-individual. Non-individual consists of limited liability companies, public companies, regional public companies, other legal entities owned by the state, public service entities, business entities established by foundations, cooperatives, partnerships, corporate associations, and civil alliances.

Those parties must submit the application of license in the power sector through the following process.

    1. Having a Business Registration Number (NIB) in the OSS System;
    2. Submitting applications through OSS System;
    3. Completing the application form along with with the administrative and technical requirements in accordance to MEMR 39/2018;
    4. Fulfilling administrative requirements based on NIB requirements for power sector
    5. Fulfilling technical requirements based on the fulfillment of Business License Commitments and/or Commercial or Operational Permit Commitments in OSS System;
    6. If the commitment is not fulfilled, the business license and / or commercial or operational license that has been issued is declared null and void;
    7. If all requirements and commitments are fulfilled, the Minister of Energy and Mineral Resources will issue a permit through the OSS System.

The mechanism of the application applies to new applications for licenses in the electricity sector and extension or change of license in the electricity sector.

 


ADCO Law earns the trust to represent clients from multinational companies to emerging entities across a wide range of industries to achieve their business objectives in Indonesia.

By combining commercial sensibilities and legal expertise, ADCO as a Law Firm Jakarta assists the clients to structure, organize and implement their business ventures and investments, including structuring, financing and securing investments as well as establishing new foreign companies in Indonesia. Should you have more queries regarding this matter, please do not hesitate to contact us.

Dendi Adisuryo
dendi.adisuryo@adcolaw.com

Liza Mashita
liza@adcolaw.com

@2020 ADCO Law. All rights reserved.
This publication has been prepared by Aditya Yudhistira for general informational purposes only to provide clients with information on recent legal developments and is not intended as legal advice or opinion.

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