Himawan Estu Bagijo as attorney of the Petitioner in the ruling hearing of the judicial review of the Geothermal Law on Wednesday (20/9) in the Courtroom of the Constitutional Court. Photo by Humas MK/Ganie.

The Constitutional Court (MK) rejected the entire petition for judicial review of Law No. 21/2014 on Geothermal and Law No. 23/2014 on Regional Government (Pemda Law). Case No. 11/PUU-XIV/2016 related to the authority of geothermal management was filed by East Java Governor Soekarwo.

"The judicial ruling hears, rejects the Petitioner’s petition for the whole," said Plenary Chairman Arief Hidayat in the presence of the other Constitutional Court Justices in court verdict on Wednesday (20/9) afternoon.

The Petitioner represented the East Java Provincial Government objected to Article 5 paragraph (1) letter b, Article 6 paragraph (1) letter c, and Article 23 paragraph (2) of Geothermal Law and Appendix cc, number 4 on New Renewable Energies Sub-Affairs of Law on Regional Government that only authorizes the Central Government to grant geothermal management permits. According to the Petitioner, this is contrary to the principle of autonomy granted to regions as referred to in Article 18 paragraphs (2) and (5) of the 1945 Constitution.

After thoroughly examining the Petitioner\'s argument, the President\'s statement, and the Regional Representatives Council’s (DPD) statement, the Court considered that the increased energy demand should be balanced with adequate energy provision. Indonesia has enormous geothermal potentials for reliable energy.

The Court was of the opinion that geothermal energy that is a renewable energy source being sub-affairs of selected concurrent government whose powers are shared between the central and provincial governments not contradictory to the 1945 Constitution. "As long as its determination is based on the principles of accountability, efficiency, externalities, and national strategic interests,” said Deputy Chief Justice Anwar Usman who read the opinion of the Court.

The Court also affirmed the provisions of Article paragraph (1) letter b, Article 6 paragraph (1) letter c, and Article 23 paragraph (2) of the Geothermal Law and Appendix cc, number 4 on New Renewable Energies Sub-Affairs of Law on Regional Government that grants geothermal authority of geothermal management for indirect utilization, including the authority to grant permits to the central government not contradictory to the 1945 Constitution.

Later, Anwar said the existence and character of geothermal did not allow it to be divided administratively, both for the provincial and district contexts. It is known from the statement of a geothermal expert before the Court, who explained that Indonesia\'s geothermal system has a unique character that is cross-administrative region. Determination of territory is based not on administrative areas, but on the location of geothermal resources.

"Considering based on the above considerations, the Court is of the opinion that the Petitioner’s argument is unreasonable according to law," said Justice Anwar. (Nano Tresna Arfana/LA/Yuniar Widiastuti)