Abstract:

This paper aims to analyze whether the Power Purchase Agreement between PT GREEN and State Electricity Company (PLN) is included in the Service Concession Agreement in accordance with ISAK 16 or in the Containing Lease Agreement in accordance with ISAK 8. PT GREEN is a renewable energy development company especially wind power plants. ISAK 16 states that an agreement can be categorized as a Service Concession Agreement if PLN as the concession provider controls the services that must be provided by PT GREEN as the operator, and at what price; and PLN controls the residual interest in the assets at the end of the agreement period. Based on an analysis using ISAK 16, it was concluded that the PT GREEN Electricity Purchase Agreement with PLN is not a Service Concession Agreement because PLN does not control the price of electricity in the agreement and does not have rights to assets at the end of the agreement period. Whereas ISAK 8 states an agreement containing a lease if the fulfillment of the agreement depends on the use of an asset and the agreement grants the right to PLN as the buyer to use the asset. The analysis using ISAK 8 shows that the PT GREEN Electricity Purchase Agreement with PLN does not contain rent because PLN does not have the right to use the assets of PT GREEN's power plants. Therefore, the power plant assets stipulated in the agreement are not treated as financial assets or intangible assets according to ISAK 16, or rental assets in accordance with ISAK 8. PT GREEN power plant assets are treated as fixed assets in accordance with PSAK 16.