Electricity Unions urge House of Representatives to stop Omnibus Law Deliberation

Omnibus Law bears the potential of private/foreign companies to control electricity - a move that goes clearly against the Constitution of Indonesia. A joint press release was issued on 27 July by SP PLN Persero, PP Indonesia Power, SP PJB, SPEE-FSPMI, and Serbuk Indonesia during a meeting in Jakarta.

Press release

Unions of electricity sector urge the House of Representatives to immediately stop the deliberation of Omnibus Law Employment Creation Draft (RUU Cipta Kerja). The statement is released by unions of electricity sector in Indonesia, i.e. SP PLN Persero, PP Indonesia Power, SP PJB, SPEE-FSPMI, and Serbuk Indonesia in a discussion in Jakarta, on Monday (27/7/2020).

The unions made the statement not only because the House of Representatives once promised to stop the deliberation of Omnibus Law in its recess but also because the unions think that Omnibus Law Employment Creation Draft will only make the economy slumped down.

Omnibus Law bears the potential of privates to control over electricity. This is clearly against the Constitution of Indonesia. If electricity is no longer in the hands of the State, then the electricity rate will increase and threaten the sovereignty of the state and finally will hamper the ambition of creating energy independence.

The Electricity Sub-cluster of the Draft of Omnibus Law Employment Creation consists of three things, i.e.:

  1. The removal of the state’s control over production sectors which are important for the State and affect the lives of the people, in this sense is electricity (Constitutional Court Ruling No. 001-021-022/PUU-I/2003 and No. 111/PUU-XIII/2015).

    • to return to the articles that had been canceled by Constitutional Court Decision No. 111/PUU-XIII/2015 (to revive the zombie articles)

    • to combine the definition of “operational permit” and “electricity provision business” that is aimed at betraying the Constitutional Court (Mahkamah Konstitusi) Decision No. 111/PUU-XIII/2015

    • to obscure the definition of “business area” that is aimed at betraying the Constitutional Court Ruling No. 111/PUU-XIII/2015

  2. To remove The House of Representatives’ function in creating and monitoring on policies on electricity. This is stated in:

    • To remove The House of Representatives’ role in designing General Plan of National Electricity (RUKN)

    • To remove The House of Representatives’ right to set electricity rate for consumer and the right to set Guidance of electricity rate setting

    • Many electricity arrangements deliberated by the Government without discussing it with the Parliament. Electricity Sub-cluster of Omnibus Law Employment Creation obliged the government to create 14 government regulation to further detail.

    • Government Regulation made under Omnibus Law Employment Creation are for regulating or surpassing higher law in the hierarchy

  3. Electricity Sub-Cluster of Omnibus Law Employment Creation removes regional government’s authority

Therefore, unions of electricity sector urge all parties to put more attention to electricity sub-cluster of the omnibus Law Employment Creation. The impact of this law will be the increase of electricity rate and the loss of energy independence in the Republic of Indonesia.

Published by:

1. Muhammad Abrar Ali, Chairperson of DPP SP PLN Persero (HP: 0811-6562-973)
2. PS Kuncoro, Chairperson of PP Indonesia Power (HP: 08128879715)
3. Agus Wibawa, Chairperson of SP PJB (HP: 0896 8750 0690)
4. Yudi Winarno, Chairperson of SPEE-FSPMI (085715552091)
5. Subono, Chairperson of Federasi Serbuk Indonesia (HS: 085810222340)
6. Indah Budiarti, Public Services International (HP: 081380416310)