INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Serafina (Fina) Muryanti and Adya Sepasthika, ABNR Counsellors at Law
compensation is to be paid once to the land- owner. 4.5 Monopoly Rights to Provide Transmission Services Transmission lines in Indonesia are mostly owned and operated by PLN; only a handful of trans- mission lines are owned and operated by private entities such as PT Cikarang Listrindo or captive power plants. It is possible for a private entity to own and operate transmission lines subject to obtaining a Stipulation of Business Area permit (which demarcates the specific area in which the transmission company can construct and oper- ate the transmission lines and provide trans- mission services) from the MEMR. Once it has received the Stipulation of Business Area permit for transmission services, the transmission entity has an exclusive right to construct and operate transmission facilities within a defined territory under the Stipulation of Business Area permit, and competitors are prohibited from building transmission lines in that territory and offering transmission services because – under the regu- lation – there cannot be more than one holder of a Stipulation of Business Area permit covering the same area. 4.6 Transmission Charges and Terms of Service The Electricity Law provides that electrical grid rent prices must be based on the principle of sound business. The rent price is also subject to approval from the Ministry of Energy and Mineral Resources. The terms of service are not regu- lated and can thus be agreed contractually by the parties.
sation of transmission networks for the public interest, as well as transmission service to all parties that request it, taking into considera- tion the quality and capacity of the transmission lines.
5. Distribution 5.1 Constructing and Operating Electricity Distribution Facilities
Please see 3.1 Constructing and Operating Generation Facilities , as the same regulations are applicable to the construction and operation of electric distribution facilities. 5.2 Regulatory Process for Obtaining Approvals to Construct and Operate Electricity Distribution Facilities Please see 4.1 Constructing and Operating Transmission Lines and Associated Facilities and 4.2 Obtaining Approvals to Construct and Operate Transmission Lines and Associated Facilities , as the same requirements are applica- ble to the construction and operation of electric distribution facilities. 5.3 Terms and Conditions Imposed in Approvals to Construct and Operate Electric Distribution Facilities Please see 4.3 Terms and Conditions Imposed on Approvals to Construct and Operate a Transmission Line and Associated Facilities . 5.4 Eminent Domain, Condemnation or Expropriation Rights to Construct and Operate Electricity Distribution Facilities Please see 3.4 Eminent Domain, Condemna- tion and Expropriation Rights to Construct and Operate Generation Facilities and 4.4 Eminent Domain, Condemnation and Expropriation
4.7 Open-Access and Non- Discriminatory Transmission
The electricity regulations require a transmission entity to provide opportunities for shared utili-
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