Indonesia's Minister of Energy and Mineral Resources (MEMR) issued a regulation, in January 2015,  intended to make it easier for PT PLN (Persero) (PLN), the country's state-owned electricity company, to buy electric power  from Independent Power Producers (IPPs).

MEMR Regulation No. 3 of 2015 on Procedures for the Purchasing by PT PLN (Persero) of Electric  Power from Mine-mouth Power Plants, Coal-fired Power Plants, Gas-fired/Gas-engine Power Plants and  Hydropower Plants provides a pre-approved range of electricity tariffs, with reference prices  depending on fuel/project type and plant capacity (increased capacity levels result in a lower  tariff). PLN does not need to apply for ministerial approval of the tariff paid to an IPP so long  as the price is at or below the specified reference price. Removing the need for ministerial  approval should shorten the negotiation process between IPPs and PLN, in cases where direct  appointment of an IPP is permitted, and give increased flexibility to PLN in agreeing to power  purchases.

Previously, PLN was required to procure ministerial approval in all but limited cases (including  certain renewable energy and small-scale projects). The regulation also provides that PLN is to  adopt model procurement documents and model power purchase agreements for the various fuel/project  types. Reportedly, MEMR hopes that the regulation will help to reduce barriers to power-plant development and will accelerate PLN's program for purchasing power from IPPs.