Danantara to Reduce PLN Subsidiaries to 23 Entities by 2028

BPI Danantara targets the simplification of PT PLN (Persero)’s business structure by reducing the number of business entities from 44 to 23 by 2028. This move is part of PLN Group’s transformation and streamlining programme to improve operational efficiency and strengthen corporate governance.

The plan emerged during a meeting between the Head of the State-Owned Enterprise Management Agency (BP BUMN) and Chief Operating Officer (COO) of Danantara Indonesia, Dony Oskaria, with PLN’s board of directors on Tuesday, 2 June 2026. According to Dony, the downsizing of subsidiaries aims to increase operational efficiency, strengthen corporate governance, and create a more focused and integrated business structure.

“Accelerating transformation and strengthening the reliability of the electricity system is key to ensuring PLN can more effectively support national energy security,” said Dony, as quoted from a written statement on Thursday, 4 June 2026.

In addition to discussing the reduction of subsidiaries, the meeting also highlighted the progress of the Electricity Supply Business Plan (RUPTL) implementation and efforts to strengthen the electricity system following disruptions in Sumatra. PLN reported that the implementation of the 2025-2034 RUPTL is showing positive progress.

Of the total planned electricity projects, approximately 1,634 projects, or nearly 40 per cent, have entered the execution phase. This achievement reflects PLN’s commitment to accelerating the development of national electricity infrastructure, ranging from power plant construction and transmission networks to substations, to meet increasing energy demands.

Dony also emphasised measures to strengthen the electricity system following the disruptions in Sumatra, requesting that PLN continuously evaluate the system to improve the reliability of the power supply. Furthermore, he noted that several strategic projects are being prepared, including the strengthening of Sumatra’s electricity backbone infrastructure, the construction of 500 kV, 275 kV, and 150 kV transmission networks, and the addition of power generation capacity across various regions to bolster system resilience and minimise the risk of future disruptions.