In January 2024, the Ministry of Energy and Mineral Resources (“MEMR“) enacted MEMR Regulation No. 2 of 2024 (“New Regulation“) to replace and revise MEMR Regulation No. 26 of 2021. The New Regulation introduces several changes to the regulatory framework on rooftop solar systems, including:
- Imposing an obligation on PT PLN (Persero) Tbk., as the IUPTLU (Izin Usaha Pemegang Tenaga Listrik untuk Kepentingan Umum) or holder of the power supply business licence for public interest, to prepare a development quota for rooftop solar systems;
- Removing the kWh metering scheme and eliminating the parallel operation payments;
- Adding the deemed approval concept for rooftop solar system applications;
- Introducing penalties for violation of the rooftop solar systems’ requirements; and
- Continuation of the carbon economic value regulation for rooftop solar systems.
In this Update, we will discuss each of these changes and their respective impacts on the various stakeholders and the broader operational landscape in Indonesia.
For more information, click here to read the full Legal Update.
