CHAIRMAN of the Central Executive Board of the PT PLN (Persero) Workers Union (DPP SP) Abrar Ali accused the scheme for implementing joint utilization of transmission networks (PBJT) or power wheeling as a covert liberalization effort by the government.
The reason is, the power wheeling scheme proposed in the Draft Law on New Energy and Renewable Energy (RUU EBET) will allow private parties or independent power producer (IPP) can distribute electricity to industrial areas through business areas outside of PLN’s by renting PLN’s network. Abrar also emphasized that his party opposed the scheme.
“We continue to reject the scheme because it is legally and constitutionally flawed and does not support the people’s economy. This PBJT scheme is just a government trick, which we call the government’s disguised liberalization,” said Abrar in an official statement, Thursday (12/9).
Abrar said the rejection of the PBJT scheme was because it was considered contrary to the constitution, namely Article 33 of the 1945 Constitution (UUD) which mandates that strategic sectors concerning the livelihoods of many people must be controlled by the state. In this case, it is represented by state-owned enterprises (BUMN).
According to him, if the scheme power wheeling implemented, automatically state control is not fulfilled because some of it is transferred to the private sector.
“We reject this scheme because it is based on the Constitutional Court (MK) Decision No. 36/2012 which states that the managers of the people’s livelihood are BUMN, not the private sector,” he stressed.
Also read: DPR and ESDM Ensure Power Wheeling Scheme Included in EBET Bill
Then, Abrar said that according to the Constitutional Court decision No. Decision 001-021-022/PUU-I/2003, it stated that the policy of separating the electricity supply business with an unbundling system or a business model that breaks down business parts is considered to reduce the meaning contained in Article 33 of the 1945 Constitution.
“Until then, system unbundling which contains the scheme is also unconstitutional, and must be rejected,” he added.
The same thing, continued the General Chairperson of the DPP SP PT PLN, if viewed from the Constitutional Court Decision No. 111/PUU-XIII/2015 which stated that the electricity business was carried out competitively and unbundling contrary to Article 33 of the 1945 Constitution.
Also read: Atakore Youth Demands PLN Mitigate Disaster Impacts of Atadei Geothermal Power Plant
“It is explained that electricity as a public utility cannot be handed over to the free market mechanism, because the parties make decisions based on supply and demand,” said Abrar.
Therefore, his party proposed that the ratification of the EBET Bill be postponed. Abrar is of the view that the public, including labor unions, have the right to provide input verbally and/or in writing in the formation of the law.
“The process of forming the EBET Law must follow stages by containing the principles of openness, democracy, accountability and participation. Do not justify any means because of momentary interests or a group,” he said. (J-3)
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– How does the power wheeling scheme proposed by the Indonesian government affect state control over the electricity sector?
Table of Contents
Power Wheeling Scheme: A Covert Liberalization Effort by the Government?
The proposed scheme for implementing joint utilization of transmission networks, also known as power wheeling, has sparked controversy in Indonesia. The Chairman of the Central Executive Board of the PT PLN (Persero) Workers Union (DPP SP), Abrar Ali, has accused the government of attempting to liberalize the electricity sector through this scheme. In this article, we will delve into the details of the power wheeling scheme, its implications, and the concerns raised by Abrar Ali and other stakeholders.
What is Power Wheeling?
Power wheeling is a system that allows private parties or independent power producers (IPPs) to distribute electricity to industrial areas through business areas outside of PLN’s network by renting PLN’s transmission infrastructure. This scheme is proposed in the Draft Law on New Energy and Renewable Energy (RUU EBET).
Concerns Raised by Abrar Ali and DPP SP
Abrar Ali and the DPP SP have vehemently opposed the power wheeling scheme, citing that it is legally and constitutionally flawed and does not support the people’s economy. They argue that the scheme is a covert liberalization effort by the government, which goes against the principles of the Indonesian Constitution.
Constitutional Concerns
Abrar Ali points out that Article 33 of the 1945 Constitution (UUD) mandates that strategic sectors concerning the livelihoods of many people must be controlled by the state, which is represented by state-owned enterprises (BUMN). He argues that if the power wheeling scheme is implemented, state control will be compromised, as some of it will be transferred to the private sector.
Unbundling System and Constitutional Court Decisions
Abrar Ali also cites Constitutional Court decisions that support his stance. The Constitutional Court Decision No. 36/2012 states that the managers of the people’s livelihood are BUMN, not the private sector. Additionally, the Constitutional Court Decision No. Decision 001-021-022/PUU-I/2003 states that the policy of separating the electricity supply business with an unbundling system is considered to reduce the meaning contained in Article 33 of the 1945 Constitution. the Constitutional Court Decision No. 111/PUU-XIII/2015 states that the electricity business carried out competitively and unbundling is contrary to Article 33 of the 1945 Constitution.
Electricity as a Public Utility
Abrar Ali emphasizes that electricity is a public utility that cannot be handed over to the free market mechanism. He argues that the power wheeling scheme will lead to the privatization of the electricity sector, which will have negative consequences for the people and the economy.
Implications of Power Wheeling
If implemented, the power wheeling scheme will have significant implications for the Indonesian electricity sector. It will allow private parties to distribute electricity to industrial areas, which could lead to the erosion of state control over the sector. Additionally, it could lead to the privatization of the electricity sector, which could result in higher electricity prices for consumers.
Conclusion
The power wheeling scheme has sparked a heated debate in Indonesia, with Abrar Ali and the DPP SP leading the opposition to the proposal. While the scheme may seem like a way to increase efficiency and competition in the electricity sector, it has significant constitutional and economic implications that cannot be ignored. As the debate continues, it is essential to consider the long-term consequences of the power wheeling scheme and ensure that any changes to the electricity sector are in line with the principles of the Indonesian Constitution.
Keywords: Power wheeling, liberalization, electricity sector, PT PLN, independent power producers, unbundling system, Constitutional Court decisions, public utility, privatization.
Meta Description: The power wheeling scheme proposed in the Draft Law on New Energy and Renewable Energy has sparked controversy in Indonesia. Learn more about the scheme, its implications, and the concerns raised by Abrar Ali and the DPP SP.
Header Tags:
H1: Power Wheeling Scheme: A Covert Liberalization Effort by the Government?
H2: What is Power Wheeling?
H2: Concerns Raised by Abrar Ali and DPP SP
H2: Constitutional Concerns
H2: Unbundling System and Constitutional Court Decisions
H2: Electricity as a Public Utility
H2: Implications of Power Wheeling
H2: Conclusion
How does the power wheeling scheme impact state control over Indonesia’s electricity sector?
Power Wheeling Scheme: A Covert Liberalization Effort by the Government?
The Indonesian government’s proposed scheme for implementing joint utilization of transmission networks, also known as power wheeling, has sparked controversy among stakeholders, including the Chairman of the Central Executive Board of the PT PLN (Persero) Workers Union (DPP SP), Abrar Ali. The scheme, which is part of the Draft Law on New Energy and Renewable Energy (RUU EBET), has been accused of being a covert liberalization effort by the government, aimed at transferring control of the electricity sector from the state to private parties.
What is Power Wheeling?
Power wheeling allows private parties or independent power producers (IPPs) to distribute electricity to industrial areas through business areas outside of PLN’s network, by renting PLN’s transmission infrastructure. This means that private companies can tap into the state-owned enterprise’s (BUMN) network, generating revenue and potentially undermining the state’s control over the electricity sector.
Constitutional Concerns
Abrar Ali argues that the power wheeling scheme is unconstitutional and goes against Article 33 of the 1945 Constitution, which states that strategic sectors concerning the livelihoods of many people must be controlled by the state. By allowing private parties to utilize PLN’s network, the state’s control over the electricity sector is diminished, contradicting the constitution.
Unbundling and Competition
The power wheeling scheme also involves unbundling, a business model that breaks down business parts, which is seen as unconstitutional by Abrar Ali. The Constitutional Court Decision No. 001-021-022/PUU-I/2003 states that unbundling reduces the meaning contained in Article 33 of the 1945 Constitution. Additionally, the Constitutional Court Decision No. 111/PUU-XIII/2015 highlights that the electricity business cannot be handed over to the free market mechanism, as it is a public utility that requires state control.
Liberalization and Privatization
The power wheeling scheme is seen as a covert liberalization effort, which Abrar Ali believes will lead to the privatization of the electricity sector. This raises concerns about the impact on the people’s economy and the role of state-owned enterprises (BUMN) in strategic sectors.
Opposition and Demands
The PT PLN Workers Union has rejects the power wheeling scheme, citing its unconstitutionality and potential negative impact on the economy. Abrar Ali demands that the ratification of the EBET Bill be postponed, to allow for more input from stakeholders, including labor unions, and to ensure that the law-making process is transparent, democratic, and participatory.
Conclusion
The power wheeling scheme proposed by the Indonesian government has sparked controversy and concerns about the impact on state control over the electricity sector. With accusations of covert liberalization and privatization, the scheme raises important questions about the role of state-owned enterprises in strategic sectors and the implications for the people’s economy. As the debate continues, it is essential to prioritize transparency, democracy, and participation in the law-making process to ensure that the interests of all stakeholders are protected.
