PLN Workers’ Union supports the government’s rejection of the power wheeling scheme

Jakarta – The PT PLN (Persero) Workers’ Union (SP) has expressed its full support for the government’s rejection of the power wheeling scheme in the national electricity system. According to SP PLN, the policy is a strategic step to maintain the sustainability of PLN’s role as the primary electricity provider for the community.

In an official statement on Thursday, 27 February, M Abrar Ali, Chairman of the Central Leadership Council (DPP) of SP PLN, expressed his appreciation for Indonesian President Prabowo Subianto’s decision to reject the implementation of the power wheeling scheme. He emphasised that the decision shows the government’s commitment to maintaining national energy sovereignty and protecting the wider community’s interests.

“We appreciate the firm stance of Indonesian President Prabowo Subianto, who rejected the power wheeling scheme. This rejection is a clear form of the government’s alignment with PLN as the main controller of national electricity,” said Abrar.

The President’s Special Envoy for Climate and Energy, Hashim Djojohadikusumo, previously conveyed the president’s stance on the power wheeling scheme at Jakarta’s Indonesia Economic Outlook 2025 event. Hashim emphasised that PLN must remain the central pillar in the national electricity system to ensure the fairness and affordability of electricity prices for the people.

Abrar believes that if the power wheeling scheme is implemented, it could pave the way for the private sector to produce and sell electricity directly to the public. As a result, the role of PLN as a state-owned enterprise (SOE) in the electricity sector will be eroded, and market mechanisms can determine electricity prices without any control from the state.

“PLN must remain the main controller of electricity in Indonesia. We fully support the government’s commitment to increase power capacity to 107 GW in the next 15 years, of which 75 per cent comes from new renewable energy (NRE) and 4.3 GW from nuclear. However, what needs to be underlined is that PLN must remain the national controller of electricity,” he said.

SP PLN has repeatedly rejected the power wheeling scheme, which is considered a form of liberalisation of the electricity sector that does not follow the constitution. They consider that the community’s interests must be prioritised over the business interests of a few parties.

Furthermore, Abrar emphasised that the power wheeling scheme should be removed from the New and Renewable Energy Bill (RUU EBET). He argues that the scheme brings more risks than benefits to the country and society.

“The wisest attitude and in favour of the national interest is to remove the power wheeling scheme from the EBET Bill. We will continue to voice our rejection of this scheme because it contradicts the values of Pancasila and applicable legal and constitutional norms,” he concluded. (Hartatik)

Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)

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