Policy, Legal and Regulatory Reforms. The Parties agree that implementation by the Government of the policy, legal and regulatory reforms described below in items (a) through (d) are necessary to fully achieve the objectives of the GP Project: (a) The Government agrees that the Ministry of Energy and Mineral Resources (“ESDM”), in collaboration with stakeholders in the private sector and NGOs shall develop and adopt a feed-in-tariff (“FIT”) applicable to biomass, solar and other renewable energy projects (non-hydro renewable energy projects). The FIT shall provide a reasonable incentive for independent power producers to develop and sell power to PLN. ESDM and PLN shall adopt and put in place any legal and institutional framework necessary to implement the FIT. (b) The Government agrees to the issuance of the relevant decrees/regulations for the implementation of the Electricity Law of 2009 (Law 30/2009) in order to create the conditions for assistance to any on-grid renewable energy project. (c) PLN shall issue the following (i) standard, transparent procedures for structuring and executing transactions involving independent power producers, (ii) a standard bankable power purchase agreement for small-scale renewable power producers by technology type; and
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Sources: Millennium Challenge Compact, Millennium Challenge Compact