Indonesia power sector: Updated regulation on power purchase agreements

A&O Shearman
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The Ministry of Energy and Mineral Resources (MEMR) has recently issued Regulation No. 49 of 2017 (Reg.49/2017) amending Regulation No. 10 of 2017 on Principles of Power Purchase Agreements (Reg. 10/2017) in Indonesia. Reg. 49/2017 resolves one of the concerns raised by Reg. 10/2017 previously voiced by market participants, leaving other concerns unresolved, particularly in relation to force majeure risks affecting PLN’s grid.

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