INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Serafina Muryanti, Adya Sepasthika and Kenny Poltak, ABNR Counsellors at Law
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 busi- ness. The rent price is also subject to approval from the Ministry of Energy and Mineral Resources. The terms of service are not regulated and can thus be agreed contractually by the parties. 4.7 Open-Access and Non-Discriminatory Transmission The electricity regulations require a transmission entity to provide opportunities for shared utilisation of trans- mission networks for the public interest, as well as transmission service to all parties that request it, tak- ing into consideration 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 Genera- tion Facilities , as the same regulations are applicable to the construction and operation of electric distribu- tion facilities. 5.2 Regulatory Process for Obtaining Approvals to Construct and Operate Electricity Distribution Facilities Please see 4.1 Constructing and Operating Trans- mission Lines and Associated Facilities and 4.2 Obtaining Approvals to Construct and Operate Transmission Lines and Associated Facilities , as the same requirements are applicable 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, Condemnation and Expropriation Rights to Construct and Operate Gen- eration Facilities and 4.4 Eminent Domain, Condem- nation and Expropriation Rights to Construct and Operate Transmission Lines and Associated Facili- ties . 5.5 Monopoly Rights for Electricity Distribution Entities Once they have received the Stipulation of Business Area permit for distribution from the MEMR, the dis- tribution entities have an exclusive right to construct and operate distribution facilities within a defined ter- ritory, 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. 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 ser- vice can be agreed between the parties. However, the service charge or price is subject to approval from the MEMR.
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