Indonesian Political, Business & Finance News

Following Prabowo's Directive, PLN to Halt Diesel Power Plants at 741 Sites and Replace with Solar

| Source: CNBC Translated from Indonesian | Energy
Following Prabowo's Directive, PLN to Halt Diesel Power Plants at 741 Sites and Replace with Solar
Image: CNBC

PT PLN (Persero) has responded to President Prabowo Subianto’s directive to cease operations of diesel power plants (PLTD) reliant on oil-based fuels (BBM). This move aims to bolster national energy sovereignty by reducing dependence on BBM in favour of cleaner energy sources.

PLN’s President Director, Darmawan Prasodjo, explained that the company has mapped a total of 2,139 PLTD units across 741 locations throughout Indonesia for replacement with clean energy. The transition will be implemented gradually, utilising available New Renewable Energy (EBT) potentials in each region.

“PLN has also planned to reduce BBM consumption in the electricity sector at 741 diesel power plant locations, with a total of around 2,139 diesel engines. Naturally, we will consider whether there is hydro or micro-hydro potential at those locations,” he stated during a Hearing with Commission VII of the House of Representatives (DPR RI) in Jakarta on Monday (13/4/2026).

For regions lacking water source potential, PLN is preparing a scheme to build Solar Power Plants (PLTS) along with battery energy storage systems or Battery Energy Storage System (BESS). This technology is key to ensuring stable and reliable electricity supply despite the shift from fossil fuels.

“If not available, we will design and construct Solar Power Plants equipped with Battery Energy Storage Systems,” he added.

Darmawan emphasised that by minimising the use of BBM, which is predominantly imported, the company hopes to lower the cost of electricity production, making it more competitive for the investment climate.

PLN is also designing the construction of a green enabling super grid transmission spanning 48,000 kilometres of circuits. This infrastructure will serve to evacuate power from renewable energy potential sites in remote areas to load centres in urban regions.

“This is the main topic in accelerating the energy transition, not just shifting from fossil to renewable energy, but more importantly, energy independence and self-sufficiency. Energy security. How to transform energy based on imports and replace it with energy based on domestic strength,” he stressed.

Previously, Indonesian President Prabowo Subianto firmly stated that he would close diesel power plants (PLTD) or those using oil-based fuels (BBM). In line with this, the government will build Solar Power Plants (PLTS) with a capacity of up to 100 Gigawatts (GW) within the next two years.

Prabowo conveyed that the government has decided to implement the 100 GW electrification programme.

“There will be no more electricity plants using diesel or solar [fuel]. No,” clarified President Prabowo during the inauguration of the electric commercial vehicle assembly facility of PT Vektor Teknologi Mobilitas Tbk in Magelang, Central Java, on Thursday (9/4/2026).

“With that, we will close 13 diesel power plants under PLN,” Prabowo added.

According to Prabowo’s notes, closing these diesel plants could save Indonesia 200,000 barrels of oil per day (bpd), or 20% of national oil imports. Currently, Indonesia imports around 1 million barrels of oil per day.

“We still need to import 1 million barrels a day. By closing the PLTD, we immediately save 20%. With the 100 GW later, we will save enormously, perhaps in two to three years we won’t need to import BBM at all,” he said.

“We have great strength, we are truly strong, we will stand on our own feet,” Prabowo asserted firmly.

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