Acknowledging the MEMR's efforts in developing the implementing regulations to Perpres No. 112/2022, including regulations relating to the primary terms of renewable energy PPAs, the CIPP suggested the following:

Firstly, promulgating implementing regulations to Perpres No. 112/2022 relating to template PPAs and ensuring that future PPA terms conform with those applicable regulations. 

Secondly, within such implementing regulation to create a market-accepted template PPA to significantly reduce transaction costs. More crucially, such template PPA must strike an equitable balance and allocation of risks amongst PPA contracting parties.  

Thirdly, consultation with the BPK and the OJK should be made to align risk allocation and evaluate the treatment of IPP assets and returns and be reflected within the terms of the template PPA.

These and other issues are set out in detail in the CIPP specifically in Section 8.4.3 of the CIPP.

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