Indonesian Political, Business & Finance News

More Than Just Transition: PLN Pursues Energy Independence

| | Source: REPUBLIKA Translated from Indonesian | Energy
More Than Just Transition: PLN Pursues Energy Independence
Image: REPUBLIKA

JAKARTA – The President Director of PT PLN (Persero), Darmawan Prasodjo, has stressed that the national electricity policy is focused on strengthening energy resilience, rather than merely transitioning from fossil fuels to renewable energy. Darmawan stated that this strategy is implemented through the 2025–2034 Electricity Supply Business Plan (RUPTL), which emphasises shifting from import-based energy to domestic-based energy, while maintaining electricity affordability.

“In this regard, particularly how Indonesia’s national electricity system can reduce the use of BBM (fuel oil). This is the main topic in accelerating the energy transition, not just shifting from fossil to renewable energy, but more importantly, energy independence, energy self-sufficiency, energy security,” said the PLN CEO during a working meeting with Commission VII of the House of Representatives (DPR RI) at the Parliamentary Complex in Senayan, Jakarta, on Monday (13/4/2026).

Darmawan explained that the policy direction aligns with President Prabowo Subianto’s instructions to strengthen national energy independence through the utilisation of domestic resources. In the RUPTL 2025–2034, PLN plans to add 69.5 gigawatts of generating capacity. As much as 76 percent comes from new and renewable energy, ranging from solar, wind, hydro, geothermal, to nuclear with an initial capacity of 500 megawatts.

“First, we are increasing our energy resilience or achieving our energy security. Of course, we must provide affordable energy and at the same time, we are also shifting from fossil-based with import components to renewable-based that is domestic-based,” he said.

The development of renewable energy faces geographical challenges, particularly the mismatch between energy source locations and electricity demand centres. This condition requires the electricity system to have large-scale transmission infrastructure. To address this challenge, PLN is preparing the construction of the Green Enabling Supergrid spanning around 48,000 kilometres of transmission circuits to channel electricity from remote areas to load centres.

“In implementing this energy transition, there is a challenge, namely the mismatch between the locations of renewable energy potential and the demand centres,” said Darmawan.

PLN is also developing large-scale Battery Energy Storage Systems (BESS) to support the integration of renewable energy. The decline in the cost of this technology over the past two years has made its economics increasingly competitive. As of March 2026, PLN recorded that the national electricity system is in normal condition. Net installed capacity reaches 71 gigawatts with a reserve margin of around 39 percent, so the electricity supply is considered reliable.

“Net installed capacity of 71 gigawatts, reserve margin of around 39 percent, so the national electricity supply is in reliable condition,” said Darmawan.

On the primary energy supply side, gas reserves for power plants have an average operating days of around 12 days. Coal stocks are also in safe condition with operating days reaching 15.9 days. PLN continues to accelerate the execution of projects in the RUPTL. Of the total 547 priority projects, 353 projects are in the procurement stage, 156 projects are under construction, and the rest have entered the commissioning stage as of March 2026.

Efforts to strengthen energy resilience are also carried out through reducing BBM consumption in diesel power plants. PLN targets reductions at 741 locations with a total of 2,139 diesel engines through the utilisation of renewable energy. In the first semester of 2026, PLN is preparing 21 solar power plant (PLTS) projects, including those integrated with energy storage systems, for immediate execution. This step is aimed at suppressing energy costs while reducing import dependence.

PLN is also preparing to launch the Giga One bundling project or Green Integrated Gigawatt Acceleration programme starting in 2026. This programme is aimed at strengthening the electricity system’s resilience while increasing the share of new renewable energy. This step is expected to lower the cost of electricity production and strengthen the attractiveness of green energy-based investments. This strategy is part of long-term efforts to build national energy independence.

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