Indonesian Ministry of Energy and Mineral Resources (MEMR) issued amendments to last year's Regulation 49/2018 on the Use of Rooftop Solar Power to encourage domestic use of solar energy.

In order to alleviate some deterrents on electricity consumers considering solar power, MEMR Regulation 13/2019 addresses concerns related to licensing requirements and MEMR Regulation 16/2019 aims to solve the economic aspect of solar power installation by lowering the monthly capacity charge payable to the state-owned electricity company PLN, by PLN's industrial consumers.

Outlined below are the highlights of MEMR Regulation 13/2019 and MEMR 16/2019:

Regulation 49/2018 Regulation 16/2019 Regulation 13/2019 


Captive electricity license/Operation License is required for installation of rooftop solar power with capacity
> 200 kWh 



The need to obtain Operation License is subject to prevailing regulations. The current regulation requires Operation License for captive power plant with capacity of  >500 kVA1

Operation Worthiness Certificate (Sertifikat Layak Operasi) is generally required.


Subject to prevailing regulations. The current regulation only require Operation Worthiness Certificate for captive power plant with capacity >500 kVA 

State-owned electricity company PLN's industrial customers using on-grid rooftop solar power are subject to capacity charge and emergency energy charge.

On-grid rooftop solar power users is subject to capacity charge only, payable monthly to the state-owned electricity company PLN.  

Capacity charge is calculated based on the prevailing regulation2 and subject to the following calculation formula:

Total Net Dependable Capacity of the plant x 40 hours x applicable electricity tariff

Capacity charge is calculated as follows:

Inverter total capacity (kW) x 5 (five) hours x applicable electricity tariff

The regulation3 defined emergency charge as the price of electricity payable to state-owned electricity company PLN by a power plant when the power plant use PLN's  electricity in an emergency situation to supply electricity to the power plant's customers.

Emergency charge now eliminated.
  Rooftop solar power currently in operation and/or in the process of obtaining permits and installation are subject to the provisions of Regulations 13 and 16 of 2019. 


1 MEMR No 12 of 2019 on Captive Power Plant Capacity based on Operation License

2 MEMR Regulation No. 1 of 2017 on Parallel Operation of Power Plants with PLN's Electricity Network

3 idem

About Norton Rose Fulbright Canada LLP

Norton Rose Fulbright is a global law firm. We provide the world's preeminent corporations and financial institutions with a full business law service. We have 3800 lawyers and other legal staff based in more than 50 cities across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the Middle East and Central Asia.

Recognized for our industry focus, we are strong across all the key industry sectors: financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and life sciences and healthcare.

Wherever we are, we operate in accordance with our global business principles of quality, unity and integrity. We aim to provide the highest possible standard of legal service in each of our offices and to maintain that level of quality at every point of contact.

For more information about Norton Rose Fulbright, see

Law around the world

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.