On May 26, 2025, Indonesia's minister of energy and mineral resources (MEMR) held a press conference themed "Increasing Security and Sustainability of National Energy" to announce the launch of PLN's 2025-2034 Electricity Supply Business Plan (RUPTL).
While the full text of the new RUPTL has not yet been publicly released, the following is a summary of the key points shared during the press conference.
Power generation targets
PLN outlined ambitious targets for the expansion of power generation capacity from various energy sources within the next ten years, including, among others:
Solar PV: Target of 17.1 GW for 2025-2034.
Our preliminary commentary: Achieving this will require significant land acquisition (approximately 1 hectare per 1 MW for ground-mounted installations). Floating solar PV is also being considered, with potential to utilize up to 20% of surface water areas, subject to government approval for a higher allocation. Spatial planning needs to be considered depending on the location to be used for floating solar PV (e.g. water supply reservoir, hydroelectric dam, etc.).
Hydro and wind: Target of 11.7GW for hydro and 7.2GW for wind, each for 2025-2034.
Our preliminary commentary: Most hydro and wind energy resources are located far from demand centers and base load infrastructure, necessitating substantial investment in transmission lines and grid improvements.
Battery energy storage solutions (BESS): Target of 4.3GW for 2025-2034.
Our preliminary commentary: BESS will play a key role in addressing the intermittency of variable renewable energy sources such as solar and wind. However, questions remain regarding the competitiveness of electricity prices from BESS, as PLN's traditional base cost calculations have not included BESS.
Nuclear: Target of 0.5GW for 2025-2034.
Our preliminary commentary: Nuclear energy, previously excluded from Indonesia's electricity planning, has now been introduced. PLN aims to develop two nuclear power plants (each 250MW) in Sumatra and Kalimantan over the next decade.
Gas: Target of 10.3GW for 2025-2034.
Our preliminary commentary: Gas is identified as a critical transitional energy source for Indonesia's net zero ambitions. For every 1GW of gas-fired power, PLN will require 18-24 LNG cargoes annually, translating to 180-240 LNG cargoes per year for the planned capacity addition for the next decade.
Transmission infrastructure
To support the integration of renewable energy sources, which are often situated far from demand centers, PLN plans to invite private sector's participation in the development of transmission lines and substations. This development has been highly anticipated by the market and comes as welcome news. PLN anticipates the development of 47,758 kms and 107,950 substations developments.
Investment overview
- Power generation: Total investment is projected at IDR 2,967.4 trillion (approx. USD 185.5 billion), with approximately 73% expected to be allocated to independent power producers.
- Transmission: Total investment is projected at IDR565.3tn (approx. USD35bn). The proportion allocated to independent transmission producers remains unclear.
Overall, the 2025-2034 RUPTL represents a significant and positive step forward for Indonesia's energy security and sustainability. The market is likely to view these developments as a strong signal of the government's commitment to energy transition, and the scale of the planned investments is expected to create substantial opportunities for both local and international stakeholders.
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