Jakarta – Executive Director of Indonesian Resources Study (IRESS), Marwan Batubara, said that power wheeling can provide benefits to Indonesia’s electricity. However, he said that the investment must be carried out in compliance with moral principles and fairness,
especially in meeting high electricity demand and investment needs.
“The arrangement must also be fair for all people, free of moral hazard, under the principles of good corporate governance (GCG), free from authoritarian power practices and oligarchic interests, and subject to the mandate of the constitution and law,” said Marwan in the webinar ‘Questioning the application of the power wheeling scheme in the EBET Bill’, Friday, August 2.
He explained that power wheeling is a mechanism for transferring electrical energy from private generators to state-owned/PLN operating facilities by utilising PLN’s transmission/distribution network. “This scheme can be implemented as long as there are parties who want to build the mechanism and have their own market, and do not interfere with the existing system,” Marwan said.
The government through the Ministry of Energy and Mineral Resources (MEMR) fully supports the power wheeling scheme in the New Energy and Renewable Energy Bill (EBET Bill). Commission VII of the House of Representatives also agreed and emphasized that it will accommodate this scheme in the EBET Bill, which is expected to be completed in 2024.
Marwan is very worried about the approach that is anti-democratic, and anti-justice and violates moral and constitutional principles in the process of forming and determining the norms of the EBET Bill. He mentioned that violations of the constitution and laws in the national electricity industry are common, including in the provision of power wheeling in PP No.14/2012 which violates Article 33 of the 1945 Constitution.
“The impacts of these violations include the non-optimization of national energy security, high electricity tariffs for the people and industry, the large burden of BUMN operations, and the high burden of electricity subsidies and compensation in the state budget,” said Marwan.
Furthermore, Marwan highlighted that the IPP, TOP, and power wheeling policies in PP No.14/2012 have harmed the state, SOEs, electricity consumers, and the state budget. “These losses will potentially increase if the norms on power wheeling are regulated according to the interests of the power oligarchy and rent-seeking,” Marwan said.
Therefore, Marwan emphasised that the DPR and the Government must ensure that the principles of the state become the main guide in the discussion of the EBET Bill. He also understands the importance of meeting the targets of meeting energy demand, investment, net zero emission, energy security, and national development.
However, these various ideal targets must be achieved while still paying attention to constitutional, legal, justice, togetherness, sustainability of public services, and various national strategic interests. IRESS demands that the formation of the EBET Law must adhere to the principles of state and national interests. (Hartatik)