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Jakarta Post

PLN labor union to challenge new law on electricity

Jakarta   /   Wed, January 20 2010   /  10:28 am

A labor union of state power utility PT PLN is gearing for a legal battle at the Constitutional Court as it challenges a new electricity law that opens up private participation in power supply and distribution, ending the PLN monopoly. “Wednesday will be our first court session,” PLN labor union’s chairman Ahmad Daryoko confirmed Tuesday.Ahmad said the union would specifically challenge the law’s article 10  which stipulates “Electricity provision for public needs may be done in an integrated manner”. Ahmad said: “[The clause] ‘may be integrated’ implies that this also may be not integrated or may be unbundled and this violates our constitution.” He reiterated that article 33 of the Constitution stipulated that all production facilities essential for the public must be controlled by the state. “But, when electricity provision is unbundled, the power may be gene...