π Tender Overview
The Constitutional Court Decision Number 39/PUU-XXI/2023 was read out on Friday, November 29, 2024, and witnessed directly by the Director General of Electricity of the Ministry of Energy and Mineral Resources (ESDM), together with the Head of the Legal Bureau of the Coordinating Ministry for Economic Affairs, and representatives from the Ministry of Law.
Previously, a number of trade unions and individuals filed a judicial review application for several provisions in Law Number 6 of 2023 concerning Job Creation relating to electricity.
Of the five substances tested, the Constitutional Court rejected three applications and granted two of them with several important notes:
1. Preparation of the National Electricity General Plan (RUKN)
The Constitutional Court emphasized that in the preparation and determination of the RUKN, consideration from the Indonesian House of Representatives is required. As a follow-up, the government will submit a request for consideration by the DPR on the Draft RUKN referring to the National Energy Policy.
2. Electricity Supply Business
The Constitutional Court ruled that the electricity supply business, which includes generation, transmission, distribution, and sales, must be carried out in an integrated manner. Given that this ruling has an impact on the governance of the electricity supply business for the public interest and economic development with a priority on downstream industries that provide added value to natural resources, the Government will be careful in providing legal interpretation of the ruling.
Director General of Electricity Jisman P Hutajulu, Monday (9/12) in Jakarta, said that as a follow-up to the Constitutional Court's decision, the Ministry of Energy and Mineral Resources together with related ministries/institutions will involve legal experts to provide a legal interpretation of the decision in question as a consideration for the Government to ensure appropriate policy steps in organizing the provision of electricity for the public interest so that it is in line with the Constitutional Court's decision.
The Ministry of Energy and Mineral Resources appreciates any input, opinions, or views conveyed by the public, academics, and business actors regarding the implications of this Constitutional Court decision.
"However, we urge all parties to continue to wait for the policy direction that will be determined by the Government," said Jisman.
Jisman said that the Ministry of Energy and Mineral Resources will also evaluate all regulations related to electricity to ensure that the fulfillment of electricity, which is an important branch of production and controls the livelihoods of many people, remains controlled by the state.
Jisman further stated that the Government is committed to continuing to encourage a conducive investment climate, while maintaining good governance and legal certainty in accordance with statutory regulations.