Jakarta, June 9, 2025 – The Indonesian government recently released the Electricity Supply Business Plan (RUPTL) which will be the guideline for the development of Indonesia’s electricity in the next 10 years. The government through PLN plans to increase Indonesia’s electricity capacity by 69.5 GW. Renewable energy is planned to dominate with a capacity of 42.6 GW. The plan to build this power plant is estimated to bring an investment potential of IDR 2,967.4 trillion.
Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR), in the IDX Channel Market Review forum stated that the potential investment value could contribute to economic growth of 1-1.4 percent, if all plans for adding power plants in the RUPTL are implemented.
“PLN’s implementation capability must be considered. Considering that in the 2021 RUPTL, of the approximately 10 GW of renewable energy capacity planned to start operating in 2025, only 1.6 GW was implemented,” said Fabby.
Fabby added that PLN’s ability to execute the business plan stated in the RUPTL cannot be separated from government support in the form of policies, including PLN’s funding capacity and access to funding from the private sector.
He explained that the execution of the 2025 RUPTL requires private investment support. To drive private investor interest, the government needs to work hard to ensure project bankability, as well as certainty of the auction schedule within a period of one year.
Fabby said that the auction is the key to implementing the 2025 RUPTL. For renewable energy capacity that will operate in the next three years, this year (2025) an auction must be held. Unfortunately, so far PLN has not had a definite schedule for when the auction process will be carried out. To meet the renewable energy target in the 2025 RUPTL, PLN must build an average of 5-7 GW of renewable energy each year. This is a challenge in itself, because so far PLN has never held an auction up to that large a capacity.
The 2025-2034 RUPTL contains a higher renewable energy target than the 2021-2030 RUPTL. The targets and plans prepared in the 2025 RUPTL refer to the National Electricity General Plan (RUKN) document which also contains an 8% economic growth projection. In an effort to increase economic growth, the availability of electricity is important to drive economic activities in the community.
“In addition, the 2025 RUPTL also aims to provide rural electricity. This is worthy of appreciation and support, to ensure that the quality of electricity received by all groups is reliable and of high quality and can encourage economic activities for the community,” Fabby said.
