By Romel S. Gurky
Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia officially launched PT Perusahaan Listrik Negara (PLN)’s 2025–2034 Electricity Supply Business Plan (RUPTL) on Monday, May 26, 2025. The RUPTL aligns with the National Energy Policy (KEN) and the National Electricity General Plan (RUKN), and serves as a crucial step in Indonesia’s effort to achieve Net Zero Emissions (NZE) by 2060.
“The Paris Agreement on energy transition is no longer a shared commitment, as several countries have withdrawn. However, we must remain consistent in our efforts—while also considering our national capabilities, energy availability, and economic feasibility,” Bahlil stated during a press conference.
The government plans to add 69.5 GW of power generation capacity by 2034. Of this total, approximately 76% will come from renewable energy and energy storage systems such as batteries and pumped hydro.
In the first five years, 27.9 GW will be built—comprising 9.2 GW from gas, 12.2 GW from renewables, 3 GW from storage systems, and 3.5 GW from coal-fired plants already under construction.
Read also: Private investors to develop 89% of geothermal capacity in PLN's new RUPTL
In the second half of the plan, the focus will shift to developing 37.7 GW of renewables and storage—representing 90% of planned capacity. The remaining 3.9 GW will come from fossil fuel sources like coal and gas.
Planned renewable energy sources include solar (17.1 GW), wind (7.2 GW), geothermal (5.2 GW), hydro (11.7 GW), and bioenergy (0.9 GW). Additionally, new energy sources such as nuclear will be introduced, with two small modular reactors (250 MW each) planned for Sumatra and Kalimantan.
To support distribution and system reliability, the government is reinforcing electrical infrastructure by targeting nearly 48,000 circuit kilometers of transmission lines and substations with a total capacity of 108,000 MVA, spanning from Sumatra to Papua.
“All of this is designed so that, if the grid is ready, there will be no more issues with renewable energy plant construction. In the past, we built plants without adequate grid support—PLN ended up paying 80% in take-or-pay penalties. So, we must fully support this by strengthening the grid,” Bahlil explained.
The RUPTL opens up investment opportunities worth Rp 2,967.4 trillion (approx. US$186 billion), allocated for power plants, transmission lines, distribution, and rural electrification programs. Approximately 73% of the planned capacity will be developed through private sector partnerships under the Independent Power Producer (IPP) scheme, with the remainder handled by the PLN Group.
The implementation of this plan is expected to bring significant economic benefits, including the creation of over 1.7 million new jobs across planning, construction, operations, and manufacturing. Renewable energy will be the main driver of job creation, supporting the shift to a cleaner, more sustainable energy system.
The 2025–2034 RUPTL is a tangible expression of the government’s commitment to improving public welfare through reliable, sustainable, and clean electricity. It provides investment certainty and serves as a master plan for Indonesia’s electricity development over the next decade. The plan also contributes to the national target of achieving 8% economic growth by 2029.
Importantly, the RUPTL prioritizes remote, outermost, and underdeveloped regions (3T areas). Through the Rural Electrification Program (Lisdes), the government aims to bring electricity to 5,758 currently unpowered villages—adding 394 MW of new generation capacity and connecting roughly 780,000 households. This initiative ensures that all Indonesians, even in the most remote areas, can enjoy 24-hour electricity.
“For me, energy is not just a need—it’s about equality and justice, from Aceh to Papua. President Prabowo Subianto has instructed that villages without electricity must be prioritized. We will work to complete this by 2029, starting immediately and in phases,” Bahlil concluded.
Editing by Reiner Simanjuntak
