Client Alert – NEW PLN ELECTRICITY GENERATION COSTS (BPP) PUBLISHED

The Ministry of Energy and Mineral Resources (“MEMR”) has recently promulgated the 2020 Electricity Generation Cost (Biaya Pokok Penyediaan Pembangkitan (BPP)) of PT PLN (Persero) (PLN) through MEMR Decree No. 169.K/HK.02/MEM.M/2021 dated 8 September 2021 (2020 BPP Decree).

Based on the 2020 BPP Decree, the 2020 average national BPP of PLN is set at US$7.05 cents/kWh, decreased by 0,81 cents/kWh (or around 10%) compared to the previous 2018 PLN’s BPP, which was set at US$7.86 cents/kWh.

For the local BPP, generally, the 2020 local BPP is lower in almost all regions in Indonesia compared to the 2018 local BPP, except for distribution/system/sub-system of (i) Bintan in Riau Archipelago (Kepulauan Riau), (ii) Belitung, and (iii) Bintuni in West Papua. The remaining regions see a decline in the local BPP ranging from around 0,5% to more than 50%.

Please see here for the complete newsletter: Client Alert – BPP 2020

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