{
    "success": true,
    "data": {
        "id": 1651498,
        "msgid": "conversion-of-diesel-power-plants-to-solar-indonesia-potentially-saves-rp62-trillion-per-year-1775116255",
        "date": "2026-04-02 14:00:00",
        "title": "Conversion of Diesel Power Plants to Solar, Indonesia Potentially Saves Rp62 Trillion per Year",
        "author": "Satria K Yudha",
        "source": "REPUBLIKA",
        "tags": "",
        "topic": "Energy",
        "summary": "President Prabowo Subianto's ambitious plan to develop 100 GW of solar power, starting with the conversion of 13 GW of diesel power plants (PLTD) to solar (PLTS), is projected to save Indonesia up to $4 billion or Rp62 trillion annually in electricity costs and state budget efficiency, according to the Institute for Energy Economics and Financial Analysis (IEEFA). This shift addresses the financial burden of diesel dependency in remote areas, exacerbated by high import costs and global oil price volatility, with solar combined with battery storage offering electricity at a fraction of the cost\u2014$0.08 to $0.20 per kWh compared to diesel's $0.29 to $0.65. The initiative could reduce diesel fuel imports by $2 billion and cut electricity subsidies by $1.5\u20132 billion yearly, enhancing energy resilience amid geopolitical tensions like those in the Middle East.",
        "content": "<p>President Prabowo Subianto\u2019s ambition to develop 100 gigawatts (GW)\nof solar power plants (PLTS), beginning with the conversion of 13 GW of\ndiesel power plants (PLTD) to PLTS in the initial phase, is deemed\nworthy of support. The Institute for Energy Economics and Financial\nAnalysis (IEEFA) reveals that this step could suppress electricity costs\nand generate state budget efficiency of up to $4 billion or Rp62\ntrillion per year.<\/p>\n<p>IEEFA notes that reliance on diesel for electrification in remote\nareas has burdened the state finances due to high fuel import costs and\nglobal oil price fluctuations. This can be seen from the surge in PLTD\ncosts from Rp4,746 or approximately $0.37 per kilowatt-hour (kWh) in\n2020 to Rp8,748 or $0.57 per kWh in 2023.<\/p>\n<p>The conflict in the Middle East further highlights Indonesia\u2019s\nvulnerability as an oil importer. This crisis demonstrates that energy\nresilience cannot be achieved while Indonesia remains dependent on the\nglobal fuel market.<\/p>\n<p>IEEFA\u2019s latest calculations show that a combination of PLTS and\nbattery energy storage systems (BESS) can produce low-cost electricity\nat around $0.08 to $0.20 per kWh. This figure is far cheaper than PLTD,\nwhich reaches $0.29 to $0.40 per kWh, and can even hit $0.55 to $0.65\nper kWh as seen in 2023.<\/p>\n<p>\u201cThe transition to PLTS systems will transform the cost structure of\nelectrification on remote islands. Instead of importing fuel and facing\ncomplex logistics, Indonesia can harness abundant sunlight, store it\nlocally, and distribute it reliably for over a decade,\u201d said IEEFA\u2019s\nResearch &amp; Engagement Lead Mutya Yustika in her statement on\nThursday (2\/4\/2026).<\/p>\n<p>IEEFA estimates that converting PLTD to PLTS could save around $2\nbillion from reduced diesel fuel imports. Additionally, this step would\nalso cut subsidies by $1.5\u20132 billion per year, equivalent to 15 to 18\npercent of the total electricity subsidies and compensation to PT PLN\n(Persero), which amounted to $11 billion in 2024.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/conversion-of-diesel-power-plants-to-solar-indonesia-potentially-saves-rp62-trillion-per-year-1775116255",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}