The Minister of Energy and Mineral Resources recently issued Decree No. 55 K/20/MEM/2019 on the Amount of Cost of Generation Provision (commonly referred to by its Indonesian acronym, BPP) of PLN in 2018 ("2018 BPP Decree"), which with effect from 1 April 2019 supersedes Decree of Minister of Energy and Mineral Resources No. 1772 K/20/MEM/2018 on the Amount of BPP of PLN in 2017 ("2017 BPP Decree").
What is the BPP?
The BPP figures represent the cost to PLN of procuring power from the different systems/sub-systems listed in the 2018 BPP Decree. PLN's cost of procuring power is a combination of (i) the costs of PLN generating this power itself through PLN's own power generation plants, and (ii) the cost of PLN procuring power from third party suppliers (such as Independent Power Producers (IPPs) and power rental companies)