Jun

13

Electricity Supply Business Plan 2025-2034 Officially Launched to Guide Indonesia’s Power Sector

The government continues to strengthen its commitment to sustainable energy development through the release of the Electricity Supply Business Plan (RUPTL) of PT PLN (Persero) for the 2025–2034 period. This document serves as a strategic guide for transforming the national electricity sector, with a focus on reducing dependence on fossil fuels and expanding electricity access to remote areas.

One of the key highlights of the latest RUPTL is the projected composition of future power generation, which will be dominated by New and Renewable Energy (NRE) sources as well as energy storage technologies. Of the total targeted additional capacity of 69.5 GW by 2034, more than three-quarters will come from NRE sources such as solar, wind, hydro, geothermal, and bioenergy, along with the implementation of battery storage and pumped storage systems.

This transition process will be implemented in stages. In the first five years, development will focus on projects that are already under construction, including gas- and coal-based power plants. However, in the following five-year period, the focus will shift almost entirely to NRE development. This reflects a long-term policy direction that increasingly favors clean energy.

The clean energy initiative is also being pursued alongside the expansion of the national electricity infrastructure. The government plans to develop nearly 48,000 circuit kilometers of transmission networks and substations with a total capacity of 108,000 MVA to ensure that the electricity generated can be distributed evenly across all regions of Indonesia.

In terms of financing, the RUPTL illustrates the vast investment potential in the energy sector, with total investment needs estimated at nearly IDR 3,000 trillion. Public-private partnerships, particularly with Independent Power Producers (IPPs), are expected to play a key role in supporting the development of NRE-based power plants and wider electricity networks.

Beyond the energy transition, the document also places strong emphasis on social equity through the expansion of electricity access in villages that remain unconnected to the PLN grid. Through the Village Electrification Program (Lisdes), over 5,000 villages are targeted to receive electricity, involving the construction of small-scale power plants and electricity connections to hundreds of thousands of households.

The RUPTL 2025–2034 is not merely a technocratic document, but rather a symbol of national transformation toward a cleaner, more inclusive, and competitive energy system. Its successful implementation is expected to drive green economic growth, create new employment opportunities, and improve the overall quality of life for communities across the country.

If you, a prospective client, have further inquiries about the topic discussed above, Schinder Law Firm is one of the leading corporate law firms in Indonesia, with extensive experience handling similar matters. Our team of professional corporate and civil lawyers makes us one of the top consulting firms in Indonesia. Feel free to contact us at info@schinderlawfirm.com for further consultation.

Author:
Dewi Susanti

Schinder Consultant London Ltd.

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