The Power Supply Contract serves as a crucial legal instrument in Indonesia's energy sector, establishing the commercial and technical framework for power supply arrangements between providers and consumers. This document is essential when establishing long-term power supply relationships, particularly for industrial or commercial operations requiring dedicated or substantial power supply. The agreement must comply with Indonesia's Electricity Law and related regulations, including tariff regulations, technical standards, and safety requirements. It typically includes detailed specifications for power quality, reliability standards, emergency procedures, and pricing mechanisms aligned with Indonesian regulatory requirements. The document is particularly relevant for large-scale power consumers, independent power producers, and state electricity company arrangements, requiring careful consideration of both technical capabilities and regulatory compliance.
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1. Parties: Identification of the power supplier and purchaser, including their legal status and registration details
2. Background: Context of the agreement, including relevant licenses and permits held by the parties
3. Definitions: Detailed definitions of technical and commercial terms used throughout the agreement
4. Supply Obligations: Core obligations regarding power supply, including capacity, availability, and quality requirements
5. Technical Specifications: Technical parameters of power supply, including voltage, frequency, and connection points
6. Metering and Measurement: Requirements for measuring and recording power supply
7. Pricing and Payment: Tariff structure, billing procedures, and payment terms
8. Operation and Maintenance: Responsibilities for maintaining supply infrastructure and equipment
9. Force Majeure: Events constituting force majeure and resulting obligations
10. Term and Termination: Duration of the agreement and grounds for termination
11. Liability and Indemnification: Allocation of risks and responsibilities between parties
12. Dispute Resolution: Procedures for resolving disputes, including choice of forum
13. Governing Law: Confirmation of Indonesian law as governing law and relevant regulations
14. Notices: Communication procedures between parties
15. General Provisions: Standard boilerplate clauses including assignment, amendment, and severability
1. Environmental Compliance: Required when power generation is included in scope, detailing environmental obligations and compliance requirements
2. Emergency Procedures: Needed for critical infrastructure supply arrangements, detailing responses to emergency situations
3. Security of Supply: Required for contracts with specific reliability requirements, detailing backup arrangements
4. Local Content Requirements: Necessary when Indonesian local content regulations apply to the supply arrangement
5. Change in Law Provisions: Important for long-term contracts to address regulatory changes impact
6. Step-in Rights: Required for projects involving project finance or critical infrastructure
7. Interface Obligations: Needed when multiple parties are involved in the supply chain
8. Performance Security: Required when parties agree on performance bonds or bank guarantees
1. Technical Specifications Schedule: Detailed technical parameters of power supply and equipment specifications
2. Pricing Schedule: Detailed pricing formulas, adjustments, and examples of calculations
3. Testing and Commissioning Procedures: Procedures for initial testing and ongoing performance testing
4. Operating Procedures: Detailed procedures for day-to-day operations and maintenance
5. Metering Specifications: Technical details of metering equipment and measurement procedures
6. Performance Standards: Detailed performance requirements and measurement criteria
7. Site Access and Security Procedures: Procedures for accessing facilities and security requirements
8. Emergency Contact Details: List of emergency contacts and escalation procedures
9. Required Permits and Licenses: List of all required regulatory approvals and licenses
10. Form of Performance Security: Template for performance bonds or bank guarantees if required
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