Power Generation, Transmission and Distribution 2025

INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Serafina (Fina) Muryanti and Adya Sepasthika, ABNR Counsellors at Law

5.6 Electricity Distribution System Charges and Terms of Service Distribution entities can provide opportunities for shared utilisation of the distribution network but are not obliged to do so. The charges and terms of service can be agreed between the parties. However, the service charge or price is subject to approval from the MEMR.

Rights to Construct and Operate Transmission Lines and Associated Facilities . 5.5 Monopoly Rights for Electricity Distribution Entities Once they have received the Stipulation of Busi- ness Area permit for distribution from the MEMR, the distribution entities have an exclusive right to construct and operate distribution facilities within a defined territory, and competitors are prohibited from building distribution facilities in that territory since, under the regulation, there cannot be more than one holder of a Stipulation of Business Area permit covering the same area.

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