Indonesia Needs Private Investors as Electricity Sector Investment Reaches Rp3,281 Trillion
The government has stated that the investment requirement for the national electricity sector has reached US$182 billion, or the equivalent of Rp3,281 trillion, amidst efforts to accelerate the energy transition.
The Deputy for Economic and Investment Cooperation at the Coordinating Ministry for Economic Affairs, Edi Prio Pambudi, explained that approximately 73% of this amount is designed to be undertaken by private developers and independent power producers (IPPs). He noted that the scale of the required investment represents a significant opportunity for the private sector to play a role in accelerating the national energy transition.
“This is the largest invitation for private investment in Indonesia’s energy history. To every investor present here, the pipeline is real and the doors are open,” said Edi during the Indonesia Net Zero Summit in Jakarta.
To achieve energy transition targets, the government has also set a target for the construction of 69.5 gigawatts (GW) of new power generation capacity within the 2025–2034 Electricity Supply Business Plan (RUPTL). According to Edi, this capacity is almost double the total generation capacity built in Indonesia over the last seven decades. Approximately three-quarters of this additional capacity will consist of renewable energy and energy storage facilities.
The composition includes approximately 17 GW of solar power, nearly 12 GW of hydropower, 7 GW of wind power, 5 GW of geothermal, and over 10 GW of batteries and pumped storage. Edi described the 2025–2034 RUPTL as the greenest electricity system development plan Indonesia has ever possessed.
Furthermore, the government estimates that electricity sector development over the next decade will create approximately 1.7 million jobs, ranging from engineers and technicians to construction workers and operators across various regions. Edi emphasised that the energy transition must be capable of delivering economic growth that is directly felt by the community.