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New regulation relaxes investor supervision of geothermal activities in Indonesia

Unit 1 of Sarulla Geothermal Power Plant, North Sumatra/ Indonesia (source: Ormat Technologies)
Alexander Richter 20 Sep 2017

New regulation enacted in Indonesia considered more investor friendly on issues related to supervision of ownership elements of geothermal IPPs.

A recent article in Lexology, announces the enactment of new government regulation in Indonesian on the supervision of the energy and mining industries in Indonesia. The new regulation entered into force in August 2017 and revises procedures to operators and investors in oil and gas, electricity, mineral and coal, geothermal and biodiesel businesses. It also introduces new requirements regarding changes to boards of directors and boards of commissioners and the transfer of shares.

For Geothermal IPPs, the new regulation covers relaxed rules on transfer of shares, public trading, approval, private sale and change of board members requirements.

According to Lexology, the new regulation “is considerably more investor friendly than Regulation 42/2017, which imposed stringent obligations with respect to the transfer of shares and changes to the board of directors and board of commissioners of non-geothermal and geothermal IPPs.”

For details see the article linked below.

Source: Lexology