Electricity unions in Indonesia submit study to House of Representatives

During a rally with thousands of workers on 26 August, labour unions from the electricity sector submitted a labour union analysis to the House of Representatives. This analysis explains the importance to withdraw the controversial Omnibus Law Employment Creation draft Bill as the content will potentially harm workers and the people of Indonesia.

Media release

The representatives of the labor unions in the energy sector submitted a labor union analysis regarding the electricity sub-cluster. The analysis was submitted directly by the General Secretary of Persatuan Pegawai PT Indonesia Power (PPIP-the Indonesia Power Workers Association), Andy Wijaya to the Deputy Chair of the Indonesia House of Representatives (DPR RI), Sufmi Dasco Ahmad, during a rally of thousands of workers in front of the House of Representatives on Wednesday, August 26, 2020.

Besides handing out the analysis to the Chairs of the House of Representatives, the union from the energy sector will also meet, in the near future, the fractions in the House of Representatives to submit the aforementioned analysis.

In the analysis, the union assesses that there are articles that potentially resulted from the private sector managing and controlling the electricity sector. If the electricity sector is no longer managed and controlled by the state, not only will that affect the electricity rate hike but will also jeopardize state sovereignty, thus energy independence will be difficult to achieve.

The omnibus law has removed the phrase “to do their electricity provision business” in the definition of “business area” in the Omnibus Job Creation Bill as stated in the Article 1 number 12 of Law Number 30 year 2009 on the Electricity. Referring to the Article 10 Law Number 30 Year 2009, the electricity providing business consists of four types of businesses as follows: electricity power plant, electricity transmission, electricity distribution and the sale of electricity.

By removing the phrase “to do their electricity provision business” and changing it to “the distribution and or electricity sales” then the definition of “business area” in the Omnibus Employment Creation Bill implies that power plants and electricity transmission do not need a permit from the government.

This means that every entity that has the ability to build a power plant and electricity transmission will have the freedom to build. The effect is that Indonesia will have an oversupply of electricity and the oversupply will be borne by the people and the electricity price will increase. With the increase of the electricity price, it will put a burden and create difficulties for the people, as electricity is considered as a basic need, both for the industry and for the household.

The omnibus law has also betrayed the Constitutional Court decision MK No. 111/PUU-XIII/2015, the electricity provision business for public should not eliminate state control in line with the principal of “controlled by the state”.

Based on the above mentioned statement, the union in the electricity power sector demanded that every party should pay serious attention to the sub-cluster of electricity power in the Omnibus Bill as this sub-cluster will reduce state control of electricity in the country.

The union in the electricity power sector hoped that by having this analysis the House of Representatives will withdraw the Employment Creation Bill deliberation as the content will potentially harm the workers and all Indonesian people.

Published by:

  1. Muhammad Abrar Ali, Ketua Umum DPP SP PLN Persero (HP: 0811-6562-973)

  2. PS Kuncoro, Ketua Umum PP Indonesia Power (HP: 08128879715)

  3. Agus Wibawa, Ketua Umum SP PJB (HP: 0896 8750 0690)

  4. Yudi Winarno, Ketua Umum SPEE-FSPMI (085715552091

  5. Subono, Ketua Umum Federasi Serbuk Indonesia (HS: 085810222340)

  6. Indah Budiarti, Public Services International (HP: 081380416310)