THE IMPLICATION OF NATURAL GAS CEILING PRICE POLICY UNDER THE MINISTER OF ENERGY AND MINERAL RESOURCES REGULATION NO. 10 OF 2020 TOWARDS THE REVENUE OF PANGKAH PSC CONTRACTORS

• Main Author: Andriasena
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53239
• Institution: Institut Teknologi Bandung

The Indonesian electricity sector system has been highly reliant upon fossil fuels for electricity production. Indonesia has been considered as a major global coal exporter and which also has significant Natural Gas reserves. In 2018 period, Indonesia reached 64.5 GW power plant capacity with increment level around three percent compared to year of 2017, which comprises of 50% (fifty percent) coal, 29% (twenty-nine percent) Natural Gas, Crude Oil seven percent and Renewable Energy resources 14% (fourteen percent) as fuel for the power plants. Indonesia generated 290 TWh of electricity in 2017, produced by the state-owned-entity PLN in about 75 percent of the generated power, and the remaining of 25 percent was purchased by PLN from the independent power producers. In Indonesia, the electricity sector is governed by the MOEMR, including the Directorate General of Electricity (DGE) and the Directorate General of New and Renewable Energy Conservation (DGNREEC). Whilst the PLN dominant for controlling over two-thirds of Indonesia’s installed power capacity, PLN is also the single business entity authorized by the Government of Indonesia (GOI) to run the transmission and distribution businesses of electrical power. With the objective to provide greater clarity on Natural Gas pricing and give encourage for making investment in Oil and Gas and also the Power sectors, MOEMR has issued the its Regulation No. 10 of 2020, which came into force on 07 April 2020, along with the MOEMR Decree No.91 K/12/MEM/2020 serves as an implementing regulation for such issued regulation. The objective of this study is to observe and simulating the implementation of Regulation No.10 of 2020 as a public policy in a form of regulation issued by the Minister of Energy and Mineral Resources. This study chose the program evaluation which includes the public policy analysis, in a hope that it will observe the implementation of such public policy with the objective to achieve fair and good overview on reasonable basis. In the specific study of public policy analysis of Regulation No.10 of 2020, we try to describe the policy cycle into an academic concept of which influenced by specific assumptions factored by GOI in the policy making related to the Natural Gas price and its necessity to stimulate the Power sector.