Indonesia

Getting Electricity in

Indonesia

Below is a detailed summary of the procedures, time and cost required for a business to obtain an electricity connection for a newly constructed building in Indonesia.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 185 economies. The most recent round of data collection was completed in June 2012.

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  • Standardized Company

  • Name of Utility: PT PLN
  • City: Jakarta

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No. Procedure Time to Complete Associated Costs
1 The client applies for and obtains a Certificate of “Guaranteed Electrical Installation” (JIL) from the Indonesian Electrical Contractors Association (AKLI)

The electrical contractor who carried out the internal installation inspects it, then applies for a Certificate that guarantees its conformity with the Wiring Regulations. This Certificate, Jaminan Instalasi Listrik (JIL) is issued by the Electrical Contractors Association, known as Asosiasi Kontraktor Listrik dan Mekanikal Indonesia (AKLI). This is done in accordance with the Ministry of Energy and Mineral Resources decision number 45 Year 2005 about the Test Reports on the Correct Operation of the Low-Voltage (LV) Electrical Installation, Appendix VIII. Arrangements to obtain the certificate can be made with the Regional Executive Council of the local AKLI (www.akli.org).

In 2011, PT PLN implemented a call center that made it possible for customers to request a new electricity connection on the phone. The application process was further simplified by eliminating the requirement to bring in a copy of a neighbor's bill that would help determine the exact address of the business.
Agency: Indonesian Electrical Contractors Association (AKLI) 		7 calendar days IDR 3,675,000.0
2 The client applies for and obtains inspection and Certificate of Operation Worthiness (SLO) of the Internal Installation from the National Committee for Electrical Installation (KONSUIL)

In addition to the certificate issued by AKLI, the client needs to obtain a certificate that guarantees the proper operation of the internal installation from the National Committee for Electrical Installation, Komite Nasional Keselamatan Untuk Instalasi Listrik (KONSUIL).
KONSUIL (www.konsuil.or.id) acts as an independent body in charge of inspecting and verifying the conformity of LV Installation to the norms in place. This is in accordance with articles 21 paragraph (7) and 22 paragraph (2) of the Government Regulation number 3 Year 2005, amending Government Regulation number 10 Year 1989 on the Supply and Electricity Connections.
The following documents need to be submitted:
• Installation drawings
• List of materials used: brand, size / specs
• Copy of Guaranteed Electrical Installation (JIL) certificate

Agency: National Committee for Electrical Installation (KONSUIL) 		7 calendar days IDR 2,572,500.0
3 The client submits application for electricity connection and awaits request approval including estimate of fees from PT Perusahaan Listrik Negara (PLN)

The client needs to submit the following documents along with the application:
-Copy of Identity Card
-Layout of the location
-Guaranteed Electrical Installation Certificate (JIL), and
-Certificate of Operation Worthiness (SLO) from KONSUIL

Agency: PT Perusahaan Listrik Negara (PLN) 		12 calendar days no charge
* 4 The client obtains external inspection from PT Perusahaan Listrik Negara (PLN)

An inspection of the site is needed to carry out a technical study of the connection works.
Agency: PT Perusahaan Listrik Negara (PLN) 		1 calendar day no charge
5 The client obtains external works from PT Perusahaan Listrik Negara (PLN)'s contractor

Works consist of expanding the distribution network by installing an overhead transformer and connecting to the warehouse and to the MV network.
PLN’s contractor buys the materials needed (transformer and accessories, cables) and bills the customer for the price.

Agency: PT Perusahaan Listrik Negara (PLN)'s contractor 		72 calendar days IDR 250,000,000.0
6 The client obtains final connection from PT Perusahaan Listrik Negara (PLN)

The costs are as follows:
Connection fees: IDR 775/VA (capacity assumed is 147 kVA according to PLN's tariff classes)
Stamp Duty: IDR 6000

In July 2010 a new Ministerial Regulation was introduced with the aim of increasing fairness and efficiency of connection costs. Based on that regulation, in early 2011 the Board of Directors of the utility PLN issued an official memo (PLN Board of Directors' decree No. 617.K/DIR/2010) to all PLN municipal branches instructing them to eliminate the security deposit.
Connection fees to pay to the utility were on the other hand, increased. These fees were adjusted for two reasons: to account for additional charges incurred by PLN in certain cases for the installation of new connections and to ensure all applicants receive the same treatment with respect to official connection charges.
The other reasoning for the cost adjustment was the previous fee was a product of a calculation made in 2003, as such since then the market prices have gone up and PLN had made the adjustment to take into account the market price.

Agency: PT Perusahaan Listrik Negara (PLN) 		3 calendar days IDR 113,931,000.0
* Takes place simultaneously with another procedure.
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