Indonesian Political, Business & Finance News

PLN to Reduce Number of Subsidiaries from 44 to 23

| Source: CNBC Translated from Indonesian | Business
PLN to Reduce Number of Subsidiaries from 44 to 23
Image: CNBC

PT PLN (Persero) is targeting a simplification of its business structure, reducing its number of subsidiaries from 44 to 23 by 2028. This move is part of the ongoing business transformation programme being implemented by the state-owned electricity company.

This plan was revealed during a meeting between the Head of BP BUMN and COO of Danantara Indonesia, Dony Oskaria, and the Board of Directors of PLN. The meeting highlighted PLN’s commitment to accelerating business transformation and strengthening the national electricity system. The simplification of the business structure will be achieved through various measures, including streamlining, consolidation, divestment, and the restructuring of the business portfolio.

Furthermore, the implementation of the 2025-2034 Electricity Supply Business Plan (RUPTL) is showing positive progress, with approximately 1,634 projects, or nearly 40% of the total projects, having entered the execution phase. PLN is also continuing to evaluate and strengthen the electricity system following the blackout that occurred in Sumatra, as part of efforts to improve the reliability of the national power supply.

During the discussions, Dony Oskaria and the PLN Board of Directors reviewed the progress of the PLN Group’s streamlining programme, the realisation of the RUPPL, and follow-up actions for strengthening the Sumatra electricity system. This meeting is part of the broader effort to ensure PLN’s transformation aligns with the national energy security agenda and the strengthening of State-Owned Enterprise (BUMN) competitiveness.

PLN also outlined various strategic steps currently underway, ranging from accelerating the consolidation and simplification of subsidiary structures to the accelerated construction of power plants, transmission lines, and substations in accordance with the directives of the Ministry of Energy and Mineral Resources (ESDM), as well as strengthening the backbone electricity infrastructure in Sumatra.

PLN is preparing various projects to strengthen 500 kV, 275 kV, and 150 kV transmission networks, alongside increasing power generation capacity in the Sumatra region to enhance system reliability and prevent the recurrence of similar disruptions in the future. Through measured transformation and sustainable strengthening of electricity infrastructure, BP BUMN and Danantara continue to encourage PLN to become an increasingly efficient, reliable, and competitive energy company. This move is expected to support national energy security, accelerate economic growth, and ensure higher quality electricity services for the Indonesian people.

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