Reasons why PLN Subsidiary Labor Union is suing the Water Resources Act

Big Business – The Indonesian Power Employees Association (PPIP) and the Java Bali Power Workers Union (SP PJB) filed a lawsuit against law no. 17 of 2019 regarding water resources (SDA). PT Indonesia Power and PT Pembangkit Jawa Bali are two subsidiaries of PT Perusahaan Listrik Negara (Persero) alias PLN.

So what is the reason for judicial review in court?

The main reason is that this law reactivates the BJPSDA clause (Water Resources Management Service Fee). PPIP General Secretary Andy Wijaya said that this fee will be included in the sale price of electricity.

“So that electricity becomes expensive and inaccessible to the public,” he said in his statement to Tempo in Jakarta, Thursday, August 27, 2020.

In fact, this BJPSDA clause has been declared unconstitutional in Act No. 7 of 2004 on the SDA. All provisions of the law were annulled by the Constitutional Court on 15 February 2015.

At that time, a lawsuit was filed by Muhammadiyah Central Leadership, led by Din Syamsuddin, against Act No. 7 of 2004. The Constitutional Court granted the lawsuit in full. So, the government needs to make new rules and law number 17 of 2019 was born.

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