With the promulgation of Law No. 11 of 2020 concerning Job Creation (“Job Creation Law”) at the end of 2020, there were various legal and policy changes in Indonesia, one of which was in the electricity sector.
As an introduction, the Electricity Supply Business Permit for Public Interest (“IUPTLU”) was previously regulated in several laws and regulations under the title Electric Power Supply Business Permit (“IUPTL”).
Some of these laws and regulations include the Minister of Energy and Mineral Resources Regulation No. 28 of 2012 concerning Procedures for Application for Electricity Supply Business Areas for Public Interest (“MoEMR Regulation 28/2012”) as amended by Minister of Energy and Mineral Resources Regulation No. 7 of 2016 (“MoEMR Regulation 7/2016”) , Ministerial Regulation No. 35 of 2013 concerning Procedures for Licensing for Electricity Business (“MoEMR Regulation 35/2013“), as well as Regulation of the Minister of Energy and Mineral Resources No. 10 of 2019 concerning Procedures for Drafting a Plan for the Provision of Electricity (“MoEMR Regulation 10/2019”).
The Minister of Energy and Mineral Resources Regulation No. 11 of 2021 (“MoEMR Regulation 11/2021”) regarding the Implementation of the Electricity Business revokes several laws and regulations in the electricity sector such as MoEMR Regulation 28/2012 as amended by MoEMR Regulation 7/2016, MoEMR Regulation 35/2013, MoEMR Regulation 10 /2019, and other laws and regulations contained in the MoEMR Regulation 11/2021.
The MoEMR Regulation 11/2021 not only revoked several earlier laws and regulations, but also presented a series of changes, both editorial and substantial, which affect the the electricity sector.
Revocation of Electricity Supply Business Permit (IUPTL) as an Administrative Sanction
MoEMR Regulation 11/2021 harmonizes the different arrangements regarding the authority to issue and revoke IUPTL by the Governor, where this is different from the previous regulations, namely MoEMR Regulation 10/2019.
Previously, MoEMR Regulation 35/2013 had not regulated the Governor’s authority in issuing and revoking IUPTL. Meanwhile, in the MoEMR Regulation 10/2019, the issuance of an IUPTL by the Governor is regulated at a number of stages such as in the stage of Ratification and Reporting of the RUPTL.
In this case, the MoEMR Regulation 11/2021 stipulates that the revocation of the General Electricity Supply Business License, as a form of administrative sanction, can be made by the Minister of Energy and Mineral Resources (“Minister”) and the governor in accordance with their authority, where previously, in the MoEMR Regulation 35 /2013 Electricity Supply Business License (“IUPTL”) can only be revoked by the Minister.
This is in line with the contrarius actus principle, where the agency/official that issues the state administrative decision (TUN) is itself authorized to cancel it.
Business Area Criteria
In Article 14 letter e of the Minister of Energy and Mineral Resources 11/2021 there are new criteria for Business Areas, namely:
“The Business Area proposed by the Business Actor is an integrated area that manages energy resources in an integrated manner according to the pattern of business electricity needs.”
Transfer of Business Area Stipulation
In MoEMR Regulation 11/2021, the Minister may revoke the determination of the Business Area in event that (a) the Business Entity does not obtain an IUPTLU within 3 (three) years after obtaining the determination of the Business Area; (b) the IUPTLU expires and is not extended; (c) the IUPTLU is revoked; or (d) the Business Entity is unable to fulfill its obligations in its business area.
Based on Article 19 paragraph 2 of the MoEMR Regulation 11/2021, the revoked business area can be transferred to:
MoEMR Regulation 11/2021 brings changes to MoEMR Regulation 28/2012, which previously stipulated that if the the Business Area is revoked, then the Minister may also transfer the Business Area to another IUPTL permit holder and/or other business entity, in which case according to the Law No. 30 of 2009 concerning Electricity as amended by Law Number 11 of 2020 concerning Job Creation, what is meant by other business entities (institutions) are representatives of foreign institutions or business entities.
Thus, with the issuance of the MoEMR Regulation 11/2021, the transfer of the Work Area in event of Determination of the Business Area being revoked is that the Business Area will not be carried out by foreign business entities, but by a BUMN and/or other Business Entities holding IUPTLUs that have a Business Area. 
Change of IUPTLU
The MoEMR Regulation 11/2021 then presents editorial changes related to changes in the IUPTLU. Now, the IUPTLU must be changed in the event of a change in the capacity of the electric power installation. Previously, Permen ESDM 35/2013 provided that the IUPTLU must be changed in the event of a change in the capacity of the power plant.
Such changes can expand the scope of obligations of business actors in renewing the IUPTLU, given that the definition of electric power installations is broader in scope than power plants. Electrical power installations include power generation installations as well as electrical power transmission and/or distribution installations.
Evaluation of the Electricity Supply Business Plan (RUPTL)
MoEMR Regulation No. 11/2021 amends the regulations on the annual evaluation of the RUPTL for Business Area Holders. The yearly evaluation now also includes an evaluation of electricity demand projects, and the results of which must be submitted to the Minister.
Previously, in MoEMR Regulation 10/2019, such provisions had not been regulated.
RUPTL Realization Report
Normatively, the IUPTLU holder who owns a business area is obliged to submit a report on the realization of the RUPTL to the official issuing the IUPTLU, namely the Minister or the Governor.
In MoEMR Regulation 11/2021, the report on the realization of RUPTL for the needs of SOEs, is changed to having to furnish a report every 3 months. This is submitted in January, April, July, and at any other time if required by SOEs.
Previously, the obligation to prepare the RUPTL Realization Report for SOEs in the MoEMR Regulation 10/2019 was carried out periodically every 4 months, in May, September and January of the following year.
The presence of the Minister of Energy and Mineral Resources 11/2020 as a legal instrument that regulates the implementation of the electricity business presents a series of editorial and substantial changes to the applicable electricity regulations.
The changes presented by this regulation can be concluded as changes to procedures, requirements, and obligations of Business Actors.
For Electricity Supply Business Actors, it is important to pay attention to changes in regulations in order to maintain compliance with business activities and avoid administrative sanctions as well as to realize the implementation of a useful, sustainable, safe, optimal electricity business, which is oriented towards the preservation of environmental functions and fair efficiency.
 Indonesia, Menteri ESDM, Permen ESDM No. 10 Tahun 2019, Ps. 8 ayat (2) jo. 9 ayat (1).
 Indonesia, Menteri ESDM, Permen ESDM No. 11 Tahun 2021, Ps. 13.
 Philipus M. Hadjon & Tatiek Sri Djamiati, “Argumentasi Hukum”, (Yogyakarta: Gadjah Mada University Press, 2016), hlm. 78
 Indonesia, Menteri ESDM, Peraturan Menteri ESDM No. 11 Tahun 2021, Ps. 19
 Indonesia, Undang-Undang No. 30 Tahun 2009, Ps. 13.
 Lihat Pasal 1 angka (18) Permen ESDM No. 11 Tahun 2021, “Business Entity is a business entity in the form of a legal entity or not in the form of a legal entity established in the territory of the Unitary State of the Republic of Indonesia and conducting business and/or activities in certain fields.“
 Ibid., Ps. 13.
Indonesia, Menteri ESDM, Permen ESDM No. 35 Tahun 2013, Ps. 10.
 Indonesia, Menteri ESDM, Permen ESDM No. 11 Tahun 2021, Lampiran, hlm. 153.
 Ibid., Ps. 28.
Indonesia, Menteri ESDM, Permen ESDM No. 10 Tahun 2019, Ps. 13
 Ibid., Ps. 35 (1) & (3).
 Ibid., Ps. 35 (5).
 Indonesia, Menteri ESDM, Peraturan Menteri ESDM No. 10 Tahun 2019, Ps. 19.