Sustainable economic development is one of the key pillars of Indonesia’s Vision 2045 to become a high-income developed nation. Within this vision, energy resilience plays a critical role, supported by the accelerated deployment of New and Renewable Energy (NRE). As outlined in the National Long-term National Development Plan (Rencana Pembangunan Jangka Panjang Nasional/RPJPN) 2025-2045, the share of NRE in the primary energy mix is targeted to reach 70% by 2045.

Provincial governments have developed Regional Long-term Development Plan (Rencana Pembangunan Jangka Panjang Daerah/RPJPD) as a long-term development planning document that contains the vision, mission and direction of regional direction of development in the region for the next 20 years. In its development, this RPJPD should refer to and align with the RPJPN, from the period, contents, and targets. 

Electricity consumption per capita and shares of NRE are two targets that need to be aligned between national and regional. Meeting these targets will require substantial growth in electricity consumption – on average, more than 1.5 times increase from 2025 to 2045 and renewable energy development – on average, more than 2 times increase from 2025 to 2045. However, for some provinces, particularly those with limited industrial and commercial activities, reaching the consumption targets presents significant challenges. Additionally, a higher share of renewable energy, particularly solar, wind, and other variable sources, requires a corresponding increase in electricity demand to absorb this new capacity.

One of the strategic opportunities to address this challenge is through the Productive Use of Electricity (PUE), the use of electricity to generate economic value by enhancing existing activities, enabling new enterprises, or improving productivity and income. A targeted assessment to map electricity consumption growth potential, especially in sectors that offer direct economic benefits, can help not only to increase electricity demand but also stimulate local and regional economic development and facilitate renewable energy integration.

Currently, electricity use outside Java Island remains dominated by household consumption, while the industrial and commercial sectors still account for a smaller share. This is largely due to insufficient electricity service quality and availability, which limits productive use in those regions. Furthermore, the electricity supply has not yet fully accommodated the development needs of new industrial and business zones. Electricity is a critical energy source for Special Economic Zones (KEK), Industrial Zones (KI), and other large-scale consumers, yet its availability and reliability often remain inadequate.

In this context, a targeted assessment to map sectoral and regional potential for productive electricity use can inform more effective policies and investment decisions. By focusing on activities that generate direct economic value, the study can help provinces achieve their electricity consumption targets while aligning with Indonesia’s broader goals for renewable energy adoption, regional development, and sustainable growth.

In short, Project CASE for SEA Indonesia is opening a Request for Proposal for Study Productive Use of Electricity (PUE) to look for consultant/contractor to support CASE Indonesia in identifying opportunities to increase electricity consumption through economically productive sectors in alignment with national and provincial development targets.