{
    "success": true,
    "data": {
        "id": 2037407,
        "msgid": "cpi-introduces-independent-transmission-company-model-and-its-purpose-1791975027",
        "date": "2026-10-14 17:07:08",
        "title": "CPI Introduces Independent Transmission Company Model and Its Purpose",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Infrastructure",
        "summary": "Climate Policy Initiative Indonesia has proposed the Independent Transmission Company (ITC) model to help close a US$22.7 billion funding gap for Indonesia\u2019s planned electricity transmission expansion. The model would enable private companies to finance, build and maintain transmission assets while PLN and the Energy and Mineral Resources Ministry retain control over operations, technical standards and tariffs.",
        "content": "<p>Climate Policy Initiative (CPI) Indonesia has introduced the\nIndependent Transmission Company (ITC) model as an alternative way to\naddress the financing challenges involved in expanding Indonesia\u2019s\nelectricity transmission network. The model would allow private-sector\nparticipation in transmission infrastructure development while\npreserving state control and PLN\u2019s strategic role, as mandated by\nArticle 33 of the 1945 Constitution.<\/p>\n<p>Indonesia needs around US$24 billion to build nearly 48,000\ncircuit-kilometres of transmission lines, according to the 2025\u20132034\nElectricity Supply Business Plan (RUPTL). CPI\u2019s analysis shows that only\n5.5% of this requirement has secured financing, leaving a gap of US$22.7\nbillion, or around Rp400 trillion.<\/p>\n<p>The shortfall highlights the need to explore alternative financing\noptions to support grid expansion and the integration of renewable\nenergy.<\/p>\n<p>PLN Vice President for Electricity Infrastructure Feasibility\nManagement Deden Nabudu said transmission development requires\nsubstantial investment to strengthen system reliability and increase\nnational electricity supply capacity.<\/p>\n<p>\u201cThrough the ITC model, strong private investment interest can be\nchannelled into strategic transmission projects in the RUPTL, including\nthe Sumatra\u2013Java, Java\u2013Kalimantan and Java\u2013Madura\u2013Bali\ninterconnections,\u201d he said, according to a written statement on\nWednesday (14 October 2026).<\/p>\n<p>Drawing on the Independent Power Producer (IPP) scheme, the ITC model\nwould allow private companies to finance, build and maintain electricity\ntransmission assets. System operations, technical standards and tariff\nregulation would remain under the authority of PLN and the Ministry of\nEnergy and Mineral Resources. All transmission capacity built through an\nITC would be made available exclusively to PLN at government-regulated\ntariffs.<\/p>\n<p>CPI Indonesia Senior Manager Luthfyana Larasati said the ITC model\nwas a potential solution worth exploring to meet Indonesia\u2019s\ntransmission network financing needs.<\/p>\n<p>\u201cThrough this study, we hope to open up discussion on alternative\nfinancing involving the private sector while maintaining state control\nand PLN\u2019s strategic role,\u201d she said.<\/p>\n<p>CPI\u2019s study also identified policy and regulatory requirements for\nimplementing the model, including the development of a dedicated\ntransmission tariff, accounting adjustments to enable off-balance-sheet\nfinancing for PLN, and fiscal policy support. These measures could\nbroaden funding sources for electricity grid infrastructure and support\nrenewable energy development and Indonesia\u2019s energy transition.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/cpi-introduces-independent-transmission-company-model-and-its-purpose-1791975027",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}