Indonesian Political, Business & Finance News

PLN Cuts Business Entities from 44 to Just 23

| | Source: DUNIA-ENERGI.COM Translated from Indonesian | Energy
PLN Cuts Business Entities from 44 to Just 23
Image: DUNIA-ENERGI.COM

JAKARTA – PT PLN (Persero) is set to undergo a continuous downsizing of its business units over the next few years. The government has set a target that by 2028, PLN’s entities will be reduced to just 23 from the current 44.

Dony Oskaria, Head of the State-Owned Enterprise Agency and COO of Danantara Indonesia, held a meeting with the PLN Board of Directors on Tuesday (2/6) regarding the PLN Group’s streamlining programme. This involves consolidation, divestment, business portfolio restructuring, and the simplification of the business structure. By 2028, PLN aims to trim its business entities from 44 to 23 to improve 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 becomes more effective in supporting national energy security,” Dony stated in a release on Wednesday (3/6).

In addition to corporate transformation, PLN also reported positive progress in the implementation of the 2025–2034 Electricity Supply Business Plan (RUPTL). Of the total planned projects, approximately 1,634 projects, or nearly 40%, 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.

Discussions also highlighted measures to strengthen the electricity system following disruptions in Sumatra. PLN continues to evaluate and reinforce the system to improve the reliability of the power supply. 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 generating capacity in various regions to bolster system resilience and minimise the risk of future disruptions.

Through continuous corporate transformation, the accelerated implementation of the RUPTL, and the strengthening of the national electricity system, PLN is expected to be increasingly prepared to fulfil its role as a reliable national electricity provider while supporting economic growth, investment, and Indonesia’s energy transition agenda.

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