EMR Minister Regulation Number 38: Effort To Meet An Electricity Remote Areas

JAKARTA - As an effort to fulfill the electricity in remote areas, the Government through the Ministry of Energy and Mineral Resources has targeted about 2,500 villages can electricity by the end of 2019. To achieve these targets, Minister Ignatius Jonan has been set on November 25, 2016, Ministry of Energy and Mineral Resources No. 38 2016 on Accelerating the Rural Electrification in Developing yet, Isolated, Border and Small Island inhabited Through Implementation of Electricity Supply Business Small Scale. Through this EMR, Regional-Owned Enterprises (enterprises), private and cooperatives can manage an area of business, which is currently not covered by holders other business areas.

This regulation makes it easy for local governments to authority in providing opportunities to businesses as providers of integrated Power supply business for small scale. In addition, the acceleration program of rural electrification is to make use of renewable energy sources (NRE) as a source of electrical energy.

In his statement some time ago, Vice Minister Arcandra Tahar revealed that through this EMR Regulation, local-owned enterprises, private and cooperatives can manage an area of business, which is currently not covered by holders other business areas. "This is the breakthrough the Government to give legal protection to pursue a more equitable energy needs, which is to increase the ratio of electrified villages Indonesia is currently only amounted to 96.95% of the total 82 190 village," said Arcandra.

Based on this regulation, entities that are interested can participate in the selection in the administration of Electricity Supply Business (UPTL) for small scale.

If there is no interest in a business entity, the Governor may appoint local enterprises to organize UPTL for small scale.

For electric power tariff determination described in Article 20 and Article 21 can avail funds without the benefit of subsidies and subsidy funds. For that utilize electricity tariff subsidy funds and get the assignment of local government is to use the electricity tariff PT PLN for household consumers with a power of 450 VA. As for the determination of electricity tariffs that do not utilize the funds subsidy, the tariff determined by the Minister or the Governor by the authority.

Based on data from Village Potential (PODES) issued by the Central Statistics Agency (BPS) in 2014, there are still about 2,519 villages in Indonesia who have not enjoyed access to electricity. Of the total 2,519 villages, the new 9 villages have received electricity through the Rural Electricity Program and EBTKE infrastructure development in 2015. While in the planning of PT PLN (Persero) up to 2019, only about 504 villagers who had entered into the planning through activities rural electrification. This is what underlies the issuance of ESDM No. 38 of 2016.

For information on National Electrification Ratio at the end of 2016 has reached 91.16%. This achievement is greater than KESDM 2015-2019 Strategic Plan targets by 90%. For 2017, the government expects the national electrification ratio reached 92.75%. (NA)

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