Acceleration of PLTD to PLTS Conversion Programme: Its Impact on Listed Companies
BPI Danantara is set to accelerate the programme to convert Diesel Power Plants (PLTD) into Solar Power Plants (PLTS). This step is seen as an opportunity for listed companies that have business lines in PLTS development or are involved in their supply chains.
In previous news, Chief Executive Officer (CEO) of Danantara Indonesia, Rosan Roeslani, stated that converting PLTD to PLTS is considered strategic because it not only improves operational cost efficiency but also reduces dependence on fossil fuels that are vulnerable to global price fluctuations.
The acceleration of the PLTD to PLTS conversion is part of broader efforts to promote the clean energy transition. This programme can also reduce the energy subsidy burden in the long term while enhancing national energy resilience.
For information, there are several companies listed on the Indonesia Stock Exchange (BEI) that have business lines in commercial PLTS development.
TMAI has built a solar cell and module factory in Kendal, Central Java, with an investment value of more than Rp 1.5 trillion and capable of producing 720 Wp solar panels per panel.
In addition, PT Indika Energy Tbk (INDY) has entered the PLTS business by acquiring a Rp 31 billion PLTS power rental project from PT Tripatra Multi Energi (TIME) at the end of October 2025. The PLTS assets are located in four sites: Semarang, Grati, Bali, and Surabaya.
PT TBS Energi Utama Tbk (TOBA) has also expanded into the PLTS business by undertaking the Floating PLTS project in Batam with a capacity of 46 MWp, targeted to operate this year.
Another listed company, PT Medco Energi Internasional Tbk (MEDC), through its subsidiary PT Medco Power Indonesia, is involved in the PLTS industry by operating a 25 MWp PLTS in East Bali in mid-June 2025.
Besides that, PT Futura Energi Global Tbk (FUTR) plans to build a 130 MWp PLTS in Bali in partnership with investors from China. Currently, the project is in the feasibility study process.
Red-plate mining listed company, PT Bukit Asam Tbk (PTBA), also has a portfolio of commercial PLTS projects. Among them are the PLTS in the Cilegon Industrial Area and the PLTS along the Bali-Mandara Toll Road.
Not only that, PT Alamtri Resources Indonesia Tbk (ADRO) has also diversified its business by developing PLTS in the Central Kalimantan area.
Senior Market Analyst at Mirae Asset Sekuritas, Nafan Aji Gusta, said that accelerating the PLTD to PLTS conversion is warranted amid rising global oil prices as fuel for PLTD. This acceleration programme certainly cannot be done by Danantara alone. It requires the involvement of the private sector with strong capital and expertise in renewable energy, particularly PLTS.
This is what will open opportunities for listed companies developing PLTS or manufacturing PLTS components to participate in the projects. “There must be synergy with various companies to succeed in the conversion programme,” he said on Tuesday (24/3).
If listed companies are truly involved in this programme, they will need strong capital considering the high initial investment costs for building PLTS. It is not impossible for listed companies to require support from investors focused on the sustainable sector as partners in PLTS development.
Nafan added that the PLTD to PLTS conversion programme will be attractive to listed companies if accompanied by regulatory facilitations for PLTS construction and operation from the government, particularly related to electricity tariff policies and Domestic Content Requirement (TKDN) for the power plant components.
Head of Investment Specialist at Maybank Sekuritas, Fath Aliansyah, added that the PLTD to PLTS conversion programme, on paper, will be a positive sentiment for PLTS developers and producers to improve their long-term performance. However, listed companies need to consider all risks that may arise when involved in such projects.
“Listed companies must ensure what their cash flow rotation will be like and how much funding they need for project development,” he stated on Tuesday (24/3).
Meanwhile, Capital Market Observer and Co-Founder of AP Trading Insight Singapore, Kiswoyo Adi Joe, said that although it has great potential, converting PLTD to PLTS is not an easy matter. This is because PLTS is not a baseload power plant that can operate continuously for 24 hours. PLTS electricity production is highly dependent on sunlight conditions during the day and battery capacity to store solar energy so that the plant can operate at night.
Moreover, PLN is currently facing an oversupply of electricity. Therefore, every new power plant construction must be done carefully even if it is a replacement for an old plant.
From an investment perspective, Kiswoyo views that investors need to examine the PLTS subsector more deeply. So far, no listed company has been able to generate significant revenue contributions from the PLTS business line. Most listed companies are only using PLTS projects as business diversification.
“Investors still see the PLTS sector as a long-term option, but not as the main driver of listed company performance,” he said on Tuesday (24/3).
Indeed, there is a listed company that specialises in manufacturing solar panel products, namely PT Sky Energy Indonesia Tbk (JSKY). However, JSKY’s fate is filled with uncertainty as its shares have been suspended by BEI since mid-2022. This listed company also faced a Delay in Debt Payment Obligation (PKPU) in September 2023.
Kiswoyo mentioned that among the listed companies with PLTS business lines, DSSA is seen as having promising potential in the long term. The presence of a solar panel factory and support from the Sinar Mas Group will facilitate DSSA’s involvement in various PLTS development projects.