The Government has amended the Electricity Law.* which focus on electricity supply management from Central and Regional Government and licensing. There are no major changes but to centralizes and simplifies the requirements to become an electricity supplier by streamlining licensing procedures and centralizing the supervising/issuing authorities.

For licenses, Business Entities will only get Business License/Perizinan Berusaha issued by the Central or Regional Government. The related norms, standard, procedures and criteria of the Business License will then be stipulated by the Central Government.

For criminal sanction, there’s a new addition related to building construction. Business entities could be sanctioned up to 3 (three) years and fine up to Rp 1 Billion for any person that construct/leave building and/or plants something that:

1. Has been indemnified as referred to Article 30 paragraph (2) and/or compensated as referred to Article 30 paragraph (3) by the electricity supply business license holders;
2. Entry a free space or minimum distance around electricity lanes; and/or
3. Endanger safety and/or disrupt with the reliability of electricity supply.

* Law No. 11 of 2020 concerning Job Creation jo. Law No. 30 of 2009 concerning Electricity.