News & Updates

Legal Headlines

The Impact of the Plan to Renegotiate the Power Purchase Agreement (PPA) by PT PLN

December 11, 2017

The Directorate General of Electricity of the Ministry of Energy, Resources, and Mineral (“Directorate General”) recently issued letter to the President Director of PT Perusahaan Listrik Negara (“PLN”) concerning the Review of Power Purchase Agreement (PPA) for the power plants of the private sector (“IPP”). The letter has met with controversy from the IPP entrepreneurs, the electricity business observers in Indonesia, and the Coordinating Ministry for the Ministry of Marine Affairs of the Republic of Indonesia, and the World Bank. Many parties consider that it may create confusion among investors and would not be good for the investment climate in Indonesia.

In relation to the Directorate General’s Letter, HPRP lawyers, Joshua Satyagraha (Senior Associate) and Hendra Ong (Partner) prepare an executive summary on the impact of the PPA renegotiate plan which will be carried out by PLN.

Please download the executive summary here.

HPRP has been successfully assisting institutions in the infrastructure sector, including in the power sector in a wide range of legal areas. Please contact the Partner in-charge by telephone +6221 5701837 and email for further details.