Key insights and market outlook
PT PLN (Persero) confirms that Indonesia's power reserve margin remains sufficient to support the national electric vehicle (EV) ecosystem for several years. The current reserve margin stands at nearly 5,000 MW in Java, 2,000 MW in Sumatra, and 800-900 MW in Sulawesi. PLN is also working on increasing renewable energy mix to 70% by 2034 and developing grid connectivity between major islands to strengthen the national electricity system.
PT PLN (Persero) has confirmed that Indonesia's power generation reserve margin remains sufficient to support the growing electric vehicle (EV) ecosystem. The state-owned electricity company reported that various regions in Indonesia maintain a high reserve margin against peak demand. Specifically, the reserve margin stands at nearly 5,000 megawatts in Java, approximately 2,000 megawatts in Sumatra, and between 800-900 megawatts in Sulawesi. This surplus capacity provides a comfortable buffer for the increasing energy demands of EV adoption in the coming years.
To further strengthen Indonesia's electricity infrastructure, PLN is implementing several strategic initiatives. First, the company is focused on increasing the share of renewable energy in the national energy mix. By 2034, PLN aims to have renewable energy sources account for 70% of the country's electricity supply. This transition includes developing solar, wind, hydro, and geothermal power generation capacity.
In addition to diversifying energy sources, PLN is working on enhancing grid connectivity between major islands. The plan involves creating an integrated national grid by connecting electricity networks across islands such as Sumatra, Java, and Kalimantan. This interconnected system will not only increase overall grid resilience but also provide greater capacity to support future energy demands, including those from the expanding EV sector.
The development of a robust electricity infrastructure is crucial for supporting the widespread adoption of electric vehicles in Indonesia. PLN's efforts to maintain a healthy reserve margin and modernize the grid will be key enablers for the successful implementation of the national EV ecosystem. The company's initiatives align with the government's broader strategy to promote sustainable transportation and reduce reliance on fossil fuels.
Renewable Energy Target Announcement
Grid Connectivity Development Plan