From 1 July 2012 to 1 July 2024, Indonesia imposed nationality-based restrictions on the development of electricity infrastructure under MOI Regulation No. 54/M-IND/PER/3/2012. For coal-fired (PLTU) projects over 135 MW, hydropower (PLTA) over 150 MW, and geothermal (PLTP) over 60 MW, foreign companies were required to form consortiums with Indonesian firms, which had to lead project implementation and receive a proportion of work based on domestic content (TKDN) thresholds. Combined-cycle gas plants (PLTGU), solar power plants (PLTS), and transmission and distribution infrastructure were required to be led by national EPC companies regardless of capacity. These statutory restrictions on project leadership and execution were fully repealed by MOI Regulation No. 33/2024, effective 1 July 2024.
Separately, Indonesia lifted all formal foreign equity caps in electricity distribution as of March 2021, removing a prior 95% limit (100% under PPPs) introduced in 2016.
"Considering
a. that in order to support the development of electricity infrastructure, it is necessary to re-regulate provisions regarding the level of domestic components;
b that the Regulation of the Minister of Industry Number 54/M-IND/PER/3/2012 concerning Guidelines for the Use of Domestic Products for the Development of Electricity Infrastructure as amended several times, most recently by Regulation of the Minister of Industry Number 23 of 2023 concerning the Second Amendment to Regulation of the Minister of Industry Number 54/M-IND/PER/3/2012 concerning Guidelines for the Use of Domestic Products for the Development of Electricity Infrastructure is no longer in accordance with developments and legal needs, so it needs to be revoked;
c. that based on the considerations as referred to in letter a and letter b, it is necessary to stipulate the Regulation of the Minister of Industry concerning the Revocation of the Regulation of the Minister of Industry Number 54/M-IND/PER/3/2012 concerning Guidelines for the Use of Domestic Products for the Development of Electricity Infrastructure as has been amended several times
[...]
Article 1
Regulation of the Minister of Industry:
a. Number 54/M-IND/PER/3/2012 concerning Guidelines for the Use of Domestic Products for the Development of Electricity Infrastructure (State Gazette of the Republic of Indonesia 2012 Number 342);
b. Number 05/M-IND/PER/2/2017 concerning Amendments to the Regulation of the Minister of Industry Number 54/M-IND/PER/3/2012 concerning Guidelines for the Use of Domestic Products for the Development of Electricity Infrastructure (State Gazette of the Republic of Indonesia 2017 Number 275); and
c. Number 23 of 2023 concerning the Second Amendment to the Regulation of the Minister of Industry Number 54/M-IND/PER/3/2012 concerning Guidelines for the Use of Domestic Products for Infrastructure Development
Electricity (State Gazette of the Republic of Indonesia 2023 Number 695), is revoked and declared invalid." (MOI Regulation 33/2024, adopted 31 July 2024, Article 1 [google translation])
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"APPENDIX III - REGULATION OF THE PRESIDENT OF THE REPUBLIC OF INDONESIA NUMBER 49 OF 2021 CONCERNING AMENDMENT TO PRESIDENTIAL REGULATION NUMBER 10 OF 2021 CONCERNING THE INVESTMENT BUSINESS SECTOR
LIST OF BUSINESS FIELDS WITH CERTAIN REQUIREMENTS
- - Power plant transmission, Power plant distribution [see 2019 restrictions below]: Open (without condition)[no longer listed]"(Presidential Regulation (PERPRES) No. 49 of 2021 Concerning Amendments to Presidential Regulation Number 10 of 2021 concerning Investment Business Fields [google translation])
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"APPENDIX III - REGULATION OF THE PRESIDENT OF THE REPUBLIC OF INDONESIA NUMBER 44 YEAR 2016 CONCERNING LISTS OF BUSINESS FIELDS THAT ARE CLOSED TO AND BUSINESS FIELDS THAT ARE OPEN WITH CONDITION TO INVESTMENT - 
LIST OF BUSINESS FIELDS THAT ARE OPEN UNDER SPECIFIC CONDITIONS [...]
D. Energy and Mineral Resources Sector [...]
- Power plant transmission, Power plant distribution: Foreign capital ownership: Max.95% (Maximum 100% for the purpose of Public Private Partnership / KPS during concession period) [...]"(PRESIDENTIAL REGULATION OF THE REPUBLIC OF INDONESIA NUMBER 44 YEAR 2016 CONCERNING LISTS OF BUSINESS FIELDS THAT ARE CLOSED TO AND BUSINESS FIELDS THAT ARE OPEN WITH CONDITIONS TO INVESTMENT)
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"Article 1
In this Regulation, the following terms are defined: [...]
11. Engineering, Procurement, and Construction Company, hereinafter referred to as EPC Company, is a business entity providing combined services for planning/designing/building procurement of equipment and materials, and implementation of construction services (development) including operations, maintenance and testing which has certification, classification and qualifications in accordance with laws and regulations.
12. A national company is a business entity engaged in the field of integrated construction services established under Indonesian law with share ownership and management partially/wholly owned and controlled by Indonesian citizens or Indonesian legal entities.
13. Foreign companies are business entities engaged in the field of integrated construction services and are not established under Indonesian law. [...]
19. Hydroelectric Power Plants (PLTA) are power plants that convert the potential energy and kinetic energy of water to produce electrical energy, not only limited to water from a reservoir or waterfall, but also include power plants that use water power in other forms such as wave power.
20. Geothermal Power Plant (PLTP) is a power plant that uses hydrothermal raw materials or hot steam from geothermal energy as its main energy source.
21. Gas Power Plant (PLTG) is a power plant that converts the kinetic energy of pressurized gas to produce electrical energy, using the main energy source of Natural Gas and other related energy sources.
22. Steam Gas Power Plant (PLTGU) is a power plant that combines PLTU and PLTG, where the PLTG exhaust gas which still has a fairly high temperature is used to convert raw water into steam.
23. Solar Power Plants (PLTS) are power plants that utilize sunlight as a source of electricity, with the main tool for capturing, converting and producing electricity being Photovoltaics, which are generally called Solar Cell Modules/Panels.
24. Gas Insulated Switchgear (GIS), is a main substation whose busbars and main equipment are placed in a tube and isolated from each other by SF6 gas so that its physical construction is compact.
Article 2
(1) Every development of electricity infrastructure for the public interest must use domestically produced goods and/or services.
[...]
Article 16
The construction of the PLTU is carried out with the following provisions:
a. development of up to 135 MW per unit is carried out and led by national companies; and
b. construction of more than 135 MW per unit is carried out with the following provisions:
1. can be implemented by a national company or in collaboration in the form of a consortium with a foreign company with a clear and proportional division of the scope of work, the completion of which remains the responsibility of the leader of the collaboration; or Regulation of the Minister of Industry of the Republic of Indonesia Number: 54/M-IND/PER/3/2012
2. In the case where a national company is not yet capable, development can be carried out by a foreign company and must cooperate in the form of a consortium with a national company with a clear and proportional division of the scope of work, the completion of which remains the responsibility of the leader of the cooperation.
c. the proportion of work for national companies is the same as the value of TKDN according to their respective capacities.
Article 17
The construction of the hydroelectric power plant is carried out with the following provisions:
a. development of up to 150 MW per unit must be carried out and led by a national company; and
b. development of more than 150 MW is carried out with the following provisions: per unit
1. can be implemented by national companies working together in the form of a consortium with foreign companies and a clear and proportional division of the scope of work, the completion of which remains the responsibility of the leader of the cooperation; or
2. In the event that a national company is not yet capable, development can be carried out by a foreign company and must cooperate in the form of a consortium with a national company with a clear and proportional division of the scope of work, the completion of which remains the responsibility of the leader of the cooperation.
Article 18
The construction of the PLTP is carried out with the following provisions:
a. development of up to 60 MW per unit must be carried out and led by a national company; and
Regulation of the Minister of Industry of the Republic of Indonesia Number: 54/M-IND/PER/3/2012
b. construction of more than 60 MW per unit is carried out with the following provisions:
1. can be implemented by national companies working together in the form of a consortium with foreign companies and a clear and proportional division of the scope of work, the completion of which remains the responsibility of the leader of the cooperation; or
2. In the event that a national company is not yet capable, development can be carried out by a foreign company and must cooperate in the form of a consortium with a national company with a clear and proportional division of the scope of work, the completion of which remains the responsibility of the leader of the cooperation.
Article 19
The construction of the PLTGU is carried out by a national company in collaboration with a foreign company with a clear and proportional division of work scope and its completion is the responsibility of the collaboration leader.
Article 20
The construction of the PLTS is carried out and led by a national EPC company.
Article 21
The construction of the Transmission and Distribution Network is carried out and led by a national EPC company." (MOI Regulation 54/2012, adopted 1 July 2012, Articles 1, 2, 16-21 [google translation])
MOI Regulation 33/2024, adopted 31 July 2024
Presidential Regulation (PERPRES) No. 49 of 2021 Concerning Amendments to Presidential Regulation Number 10 of 2021 concerning Investment Business Fields [google translation]
PRESIDENTIAL REGULATION OF THE REPUBLIC OF INDONESIA NUMBER 44 YEAR 2016 CONCERNING LISTS OF BUSINESS FIELDS THAT ARE CLOSED TO AND BUSINESS FIELDS THAT ARE OPEN WITH CONDITIONS TO INVESTMENT
MOI Regulation 54/2012, adopted 1 July 2012
[<a href="https://peraturan.bpk.go.id/Details/296084/permenperin-no-33-tahun-2024">Regulation</a>],[<a href="https://peraturan.bpk.go.id/Home/Details/168534/perpres-no-49-tahun-2021">PR49</a>],[<a href="https://peraturan.bpk.go.id/Home/Details/161806/perpres-no-10-tahun-2021">PR10</a>],[<a href="https://peraturan.bpk.go.id/Home/Details/40374/perpres-no-44-tahun-2016">PR44</a>],[<a href="https://peraturan.bpk.go.id/Details/268783/permenperin-no-54m-indper32012-tahun-2012">Regulation</a>],[<a href="https://www.hoganlovells.com/en/publications/indonesia-relaxes-local-content-rules-to-energise-green-energy-investment">Other</a>]