The energy and mineral resources ministry is drawing up a new regulation that would encourage companies to build their own power plants.
“To anticipate the increasing electricity consumption and also address the issues of sufficient financing for PLN [Perusahaan Listrik Negara], the ministry will roll out measures to encourage industries to build their own power plants,” Jarman, the ministry’s director general for electricity, said on Monday.
The new regulation, Jarman said, would be centered on three issues: bureaucratic hurdles, pricing policy and ease of access to infrastructure.
“We’ll expedite the process for industries to obtain permits to build their own power plants,” Jarman said. “We will also remove electricity subsidies for industrial consumers classified as ‘I3’ and ‘I4’ so that it would be cheaper for them to build their own power plants.”