Executive Summary

Key insights and market outlook

Indonesia is making significant strides in its energy transition through major commitments from state-owned enterprises and government initiatives. PLN (Persero) targets adding 52.9 GW of renewable energy capacity by 2034, representing 76% of its total planned capacity additions. Meanwhile, Minister Bahlil Lahadalia has inaugurated 55 renewable energy projects across 15 provinces. These developments align with the government's ambitious goal of achieving 100% renewable energy mix by 2035.

Full Analysis

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Deep Dive Analysis

Indonesia's Ambitious Energy Transition Plans

Major Renewable Energy Commitments

Indonesia is accelerating its energy transition through significant commitments from both government and state-owned enterprises. PT PLN (Persero), the state-owned electricity company, has outlined an ambitious plan to add 52.9 GW of renewable energy capacity by 2034, constituting 76% of its total planned capacity additions of 69.5 GW ¹

. This strategic move is part of PLN's 2025-2034 Electricity Supply Business Plan (RUPTL), a comprehensive document guiding Indonesia's electricity development.

Government Leadership in Energy Transition

The government's commitment to energy transition is further demonstrated by Minister of Energy and Mineral Resources, Bahlil Lahadalia, who has successfully inaugurated 55 renewable energy projects across 15 provinces since taking office in 2024 ²

. Of these projects, 50 are already operational, including three geothermal power plants with a total capacity of 91.9 MW and 47 solar power plants with 27.8 MW capacity. The remaining projects are in various stages of development, including five additional geothermal projects with a combined capacity of 260 MW.

Strategic Approach to Achieving 100% Renewable Mix

To achieve the ambitious target of reaching 100% renewable energy mix by 2035, the government is exploring innovative strategies. One key approach is the planned installation of solar power plants in rural areas currently without electricity access. This initiative, aligned with President Prabowo's directive to universalize electricity access, is designed to be implemented without burdening the state budget through APBN funding. The plan includes developing solar power capacity up to 100 GW through non-APBN funding mechanisms ²

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Synergies Between Government and State-Owned Enterprises

The coordinated efforts between government agencies and state-owned enterprises like PLN demonstrate Indonesia's comprehensive approach to energy transition. PLN's commitment to developing green economy initiatives and reducing carbon emissions has been recognized through the "Perusahaan Terdepan dalam Tekan Emisi Karbon" award at the detikcom Awards 2025 ¹

. Similarly, Minister Bahlil Lahadalia received the "Tokoh Penggerak Transisi Energi" award for his leadership in promoting renewable energy investments and accelerating mining sector downstreaming ².

References