Abstract
This paper analyzes the impact of changes in electricity policy in Indonesia. The purpose of this paper is to provide an overview of the development of electricity sector regulations in Indonesia and their impact. Based on the study conducted, concluded: that the Indonesian government made a change in electricity policy under the influence of international donor agencies, International Monetary Fund (IMF) with a Letter of Intent (LOI) namely the liberalization of the electricity sector in Indonesia brought to the free market. In 2014 the Indonesian government plans to build power generation infrastructure reaching 35 thousand MW, and the percentage of infrastructure ownership is private (foreign) is more dominant, this is contrary to article 33 paragraph 2 of the 1945 Constitution of the Republic of Indonesia. The state of Indonesia with these changes is likely to be held captive by the interests of global capitalism by dictating electricity policy.
Highlights
The restructuring and deregulation of the electricity sector has a long history in many countries
Along with the momentum of the 1997 Asian crisis, the international monetary funds (IMF) came up with its economic stance as outlined in the letter of intent (LOI) with the reason to help solve the problem of electricity in Indonesia
This paper examines: “Liberalization and changes in electricity policy: the problems and challenges of the electricity sector in Indonesia” The short research subject in this paper is about the secular thinking concept of Western civilization that is based on cultural traditions reinforced by philosophical speculation related to secularism that focuses human beings as rational beings giving birth to liberalism
Summary
The restructuring and deregulation of the electricity sector has a long history in many countries. The development of this utility regulation changes, this change includes, among others, the elimination of several laws that limit competition and/or release of ownership by the public sector (state) into the private sector (Madonsela and Kachieng’a, 2003). Many Asian countries use the build operate transfer (BOT) approach to develop public infrastructure projects, including electricity infrastructure, there are. Along with the momentum of the 1997 Asian crisis, the IMF came up with its economic stance as outlined in the letter of intent (LOI) with the reason to help solve the problem of electricity in Indonesia
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