INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Serafina (Fina) Muryanti and Adya Sepasthika, ABNR Counsellors at Law
4. Transmission Lines and Associated Facilities 4.1 Constructing and Operating Transmission Lines and Associated Facilities Please see 3.1 Constructing and Operating Generation Facilities , as the same regulations are also applicable for the construction and oper- ation of transmission lines and associated facili- ties. For transmission lines, the proponent must make environmental management and monitor- ing efforts and obtain a recommendation from the Environment Office. Proof of these efforts does not require a detailed review and assess- ment (including public hearing); only inspection of the requisite documents by the Environment Office and the issue of a recommendation (which serves as an approval) is required. 4.2 Obtaining Approvals to Construct and Operate Transmission Lines and Associated Facilities The contractor that builds or constructs, and the O&M contractor that operates, the transmis- sion lines and associated facilities must obtain the licences set out in 3.1 Constructing and Operating Generation Facilities . The company or the owner of the asset must also obtain (i) an Approval of Conformity of Space Utilisation Activities permit, (ii) an AMDAL and (iii) a Building Approval permit. Please see 4.1 Constructing and Operating Transmission Lines and Associated Facilities regarding the process of obtaining the Environ- mental Approval permit.
4.3 Terms and Conditions Imposed on Approvals to Construct and Operate a Transmission Line and Associated Facilities Please refer to 3.3 Approvals to Construct and Operate Generation Facilities , as the same prin- ciples are also applicable to the construction and operation of transmission lines and associated facilities. MEMR also issued technical regula- tions on transmission lines’ standard and asso- ciated facilities. Further, in IPP projects having a build, own, operate, transfer (BOOT) scheme in conjunction with PLN, transmission lines’ stand- ard and associated facilities (built by the IPP) are transferred to PLN, and the construction must therefore be in accordance with the design and standard determined by PLN. Notably, the cur- rent regulation introduces the BOOT scheme. 4.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Transmission Lines and Associated Facilities Please refer to 3.4 Eminent Domain, Condem- nation and Expropriation Rights to Construct and Operate Generation Facilities . In addition to compensation for the acquisition of land for tower installation, the proponent must also pro- vide right-of-way compensation to landowners whose land is traversed by the transmission cables. The compensation is regulated under MEMR Regulation No 13 of 2025 concerning Clear Space for Electric Power Transmission Networks and Compensation for Land, Build- ings and/or Plants Located Below Clear Space for Electric Power Transmission Networks. The MEMR regulation sets out the formula to calcu- late the compensation for buildings, land and/ or plants. The calculation and determination of the compensation amount must be done by the Independent Appraisal Agency. The right-of-way
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