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The Job Creation Law Facilitates the Electricity Sector


By: Doni Kurniawan) *

The government has issued Government Regulation (PP) Number 5 of 2021 concerning the Implementation of Risk-Based Business Licensing. This regulation is a derivative of law Number 11 of 2020 concerning Job Creation. With the existence of this regulation, the government has the intention to make it easier to do business in the electricity sector.

The Director General of Electricity at the Ministry of Energy and Mineral Resources, Rida Mulyana, stated that through this Job Creation law , the processing of electricity business permits can be carried out more quickly and can create jobs.

              Rida also said that the derivative of this Omnibus Law is Government Regulation Number 5 of 2021 concerning Implementation of Risk-Based Business Licensing.

              The derivative regulation of the Ciptaker Law also regulates business licensing which is based on various risks, namely low, medium and high risk. The construction service business and the installation of electric power installations are included in the high-risk business category.

              Rida said, the determination of this risk level can accelerate business opening and create business certainty.

              In general, this regulation also regulates the division of authority between the Central Government and Regional Governments as well as the implementation of supervision mandated in the law on Job Creation.

              Rida also said that the substance of the regulation of the division of central and regional authority regulated in this PP includes: Central Government authorities in the business of providing electricity for public interests, self-interest, electricity support services and the authority of the Central government in the form of stipulation or approval.

              This regulation also set related to the government’s authority Prov insi the electricity supply business in the public interest, the interests of its own, as well as supporting services personnel l istricts .

              In addition to PP No. 5 of 2021, the government also has enacted Government Regulation No. 25 of 2021 concerning the organization of Bid ang Energy and Mineral Resources.

              Low risk electricity business actors are only required to have a Business Identification Number (NIB) and a statement of compliance with Standard Certificates.

              Meanwhile, for electricity business activities, medium to high risk, it is required to have a verified NIB and Standard Certificate. Meanwhile, high risk business actors are required to have a verified NIB and license.

              Now, the government has also trimmed the process of licensing electricity businesses. From the service system, a new connector with a Certificate of Acceptability for Operations (SLO) that was previously carried out separately can now be done one door.

              The Ministry of Energy and Mineral Resources has set priority programs this year for the electricity sub-sector, new renewable energy and energy conservation, the government will focus on building 27 thousand mega watt power plant infrastructure, 19 thousand kilometer circuit transmission, 38 thousand Mega Watt substation and smart grid development .

              This policy was not in vain, based on the ranking results of the ease of access to electricity published by the World Bank, Indonesia was ranked 33 in 2020. Previously, Indonesia was in the 75th position in 2015.

              On a different occasion, the Association of Indonesian Private Electricity Producers (APLSI) requested that the regulations derived from law Number 11 of 2020 can remove investment for private electricity developers or Independent Power of Producers (IPP).

              The chairman of APLSI, Arthur Simatupang, firmly said, in line with the spirit of the Job Creation Law to facilitate investment, the provisions in its derivative regulations should not complicate the business climate.

              This turned out to be important to fulfill the guidance of public services in electricity, which was realized through the collaboration between IPP and PT PLN (Perser o). In this case, the synergy between the Central Government and the Regional Government is also absolutely necessary.

              Joko Widodo’s government is also preparing to implement the Job Creation Act because it will facilitate investment, including expediting the 35,000 megawatt electricity generator program .

              The existence of the Ciptaker Law is expected to be a groundbreaker so that investor events enter during a pandemic.

              According to Bambang Praptono Law Copyright Labor make all things become easy, where regulations that impede cut. However, seeing himself can not deny that the system is in electrical power. This is due to the emergence of many new regulations, but the old regulations have not been revoked.

              Sector workforce of electricity is quite affected by the current pandemic, so perl u special formula so that this sector can be a concern for local governments concerned.

) * The author is a contributor to the Circle Press and Cikini Students

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