Jakarta, April 29, 2025 – Indonesia has renewable energy potential reaching more than 3,600 GW, but only around 0.3% of this renewable energy potential has been utilized. In the webinar “Accelerating Renewable Energy Investment in Indonesia: Shared Utilization of Transmission Networks“, for the launch of the white paper Accelerating Renewable Energy Investment in Indonesia – Shared Utilization of Transmission Networks (PBJT) Deon Arinaldo, Energy System Transformation Program Manager of the Institute for Essential Services Reform (IESR) stated that currently there is a gap in the fulfillment of electricity from renewable energy, especially in the industrial sector.

“The demand for electricity from renewable energy is getting stronger and increasing, especially from the industrial sector, but the government has not been able to meet it. We have to think about making access to renewable energy electricity more open,” said Deon.

Ollie Wilson, Head of RE100, Climate Group explained Indonesia’s current position, which is in the midst of pursuing the Net Zero Emissions target by 2060 and the renewable energy target by 2040.

“The economic growth target set by the government has implications for the need for renewable energy. The current situation faces a number of challenges ranging from network constraints to lack of capital. That is why joint use of the transmission network is a strategic means to address this need,” said Ollie.

The PBJT mechanism offered in this report allows PLN to maintain control over the electricity market, obtain new revenues and achieve the national renewable energy mix target. Over time, the PBJT scheme is expected to attract investment.

Ollie also added that there are currently more than 130 RE100 member companies operating in Indonesia. These companies require around 3 TWh of electricity each year, and this continues to increase from year to year. These companies want to invest and grow in Indonesia, but they need clear and credible options to access electricity from renewable energy.

Laura Thomas, RE 100 Analyst, added that if Indonesia can provide a reliable supply of renewable energy through the PBJT mechanism, Indonesia has the opportunity to attract foreign direct investment, create green jobs, and strengthen energy security. All of these are important elements to achieve the vision of Indonesia Emas 2045.

“This is where supporting mechanisms, such as the joint utilization of transmission networks (PBJT), become important. This mechanism allows for efficient distribution and sharing of renewable energy across the network, thereby facilitating wider access to clean electricity,” said Laura.

Alvin Putra Sisdwinugraha, IESR Electricity System Analyst noted that there are several challenges in the Indonesian energy market system, so that solutions are needed that are adjusted to existing conditions.

“RUKN 2025-2060 and RUPTL 2021-2030 mention PBJT as a strategy to improve investment in transmission and distribution networks. However, it is still necessary to determine the rental costs for transmission and distribution networks specifically and transparently,” explained Alvin.

Malaysia and Vietnam are countries in Southeast Asia that have implemented the PBJT mechanism. Mutya Yustika, Energy Finance Analyst, Institute for Energy Economics and Financial Analysis (IEEFA) explained that PBJT will make Indonesia competitive with other countries, especially Southeast Asia.

“The implementation of this PBJT scheme will also help close the gap in funding needs for electricity infrastructure, which is estimated to reach USD 146 billion,” said Mutya.

Arthur Simatupang, Chairman of the Indonesian Independent Power Producer Association (APLSI) views that the proposed PBJT scheme will encourage growth for PLN, one of which is by establishing a subsidiary (sub-holding) specifically for the transmission and distribution division.

“This PBJT uses existing network infrastructure, so it will not require too much capital (capex). In addition, because there is already a demand projection from the industry, it will be easier to invite the private sector to participate,” said Arthur.

Apit Pria Nugraha, Head of the Green Industry Center (PIH) of the Ministry of Industry, stated the same thing that the industrial sector really needs access to clean energy to attract investors. Some companies even require 100% clean energy.

“Clean energy options are currently very limited, only solar panels with limited quotas are available from PLN, while other options such as REC (renewable energy certificates) are still being debated and IPPs are hampered by unclear power wheeling regulations. The PBJT scheme is the most appropriate solution to meet the needs of the clean energy mix in industry,” explained Apit.

Sahid Junaidi, Secretary of the Directorate General of EBTKE, Ministry of Energy and Mineral Resources (ESDM) welcomed the publication of this white paper.

“The recommendations from this white paper will be concrete input for us, one of which is for the EBET Bill process which is currently still ongoing,” he said.

Lucia Karina, Director of Public Affairs, Communications, and Sustainability Coca Cola Euro Pacific Partners said that through the analysis of this white paper, it shows that PBJT is not only a technical solution, but a transformational strategy to encourage a more collaborative, efficient, and open national energy system.

“PBJT can be a catalyst for opening up access to the electricity network for the private sector which has so far been relatively closed, while reducing geographical barriers between renewable energy sources and industrial demand centers,” he said.

Karina also added that PBJT has the potential to expand more inclusive financing mechanisms without burdening the APBN or PLN, as well as opening up new collaboration spaces between developers, industry, and the government.

Closing the webinar, Fabby Tumiwa, Executive Director of IESR said it is important to ensure that this policy can accommodate changes from a centralized to a more decentralized energy system.

“We consider the PBJT policy to be a win-win solution for all parties, making PLN focus on developing the grid network, and we can get investment in developing renewable energy infrastructure and utilizing renewable energy potential, to achieve economic growth according to President Prabowo’s target and meet our climate targets,” he said.