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ARTICLE · 13 MAY 2014

New Regulations on Electricity Business

New electricity regulations have been introduced in Indonesia.

IndonesiaEnergy and Natural Resources
  • Minister of Energy and Mineral Resources Regulation No. 38 of 2013 on Compensations for Land, Buildings, and Plants Located under High Voltage Air Channels (SUTT) and Extra High Voltage Air Channels and Free Spaces (SUTET) has been enforced as of 24 December 2013. The Regulation provides the procedures as well as formula for compensation for the owners of impacted land, buildings, and plant due the establishment of electricity infrastructure. For impacted land and building, the formula for compensation is 15% x the area of impacted land or building x market value of the impacted land and building determined by the appraisal. For impacted plant, the formula for compensation is the market value of the plant determined by the appraisal. Under this regulation, an independent appraisal will be appointed to determine the market value of the impacted land, building and plant to be used as the basis for calculating the compensation amount. The compensation is payable one time

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