Wednesday, September 9, 2009

Indonesia's parliament approves new electricity law

Original source: Reuters

Indonesia's parliament approved a new electricity law on Tuesday, revoking the state electricity firm's monopoly and allowing central and regional governments to issue power permits.

The removal of state firm PT Perusahaan Listrik Negara's (PLN) monopoly opens up the market to competition and could encourage some of Indonesia's more prosperous, resources-rich provinces to embark on new power projects for local use.

"The key to the new law is that regions can actively work to provide electricity for their respective areas," Energy Minister Purnomo Yusgiantoro told reporters.

Indonesia's parliament had previously tried to end PLN's selling monopoly.

In 2002, it approved a new electricity law ending the selling monopoly of PLN, but two years later, the constitutional court struck down the law, saying that generation and distribution should be controlled by the government because of its importance.


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