Indonesia Approves Plans for 42.6GW of New Renewable Energy Capacity

The Indonesian government has officially approved the 2025–2034 Electricity Supply Business Plan (RUPTL) from PLN, the country’s state-owned utility, which includes the addition of 42.6GW in renewable energy capacity and 10.3GW in energy storage infrastructure.

Announced on May 26, Bahlil Lahadalia, Indonesia’s Minister of Investment and Head of the Investment Coordinating Board, emphasized that the targets align with the goals of the Paris Agreement. He highlighted the importance of maintaining a consistent approach toward limiting global temperature rise to 1.5°C.

“Some countries have abandoned their initial commitments to the energy transition under the Paris Agreement,” Lahadalia noted. “However, Indonesia must stay consistent, taking into account our capabilities, energy supply levels, and economic considerations.”

The RUPTL is designed to support PLN in deploying 69.5GW of new power generation capacity by 2034. Of this total, 42.6GW will be derived from renewable sources. Solar PV will lead the way with a planned 17.1GW, followed by 11.7GW from hydropower, 7.2GW from wind energy, 5.2GW from geothermal sources, and 0.9GW from bioenergy.

The remaining capacity will consist of 10.3GW from gas-fired power and 6.2GW from coal-fired plants. Additionally, two small modular nuclear reactors (SMRs) with a combined capacity of 0.5GW are scheduled to be built in Sumatra and Kalimantan.

To complement this expansion, 10.3GW of energy storage capacity will be developed to enhance grid stability.

These efforts mean that 76% of Indonesia’s upcoming power generation capacity will be renewable, increasing the renewables share in the national energy mix to 35% by 2034, up from the current 12%.

Massive Grid Expansion to Support Transition

A central component of Indonesia’s energy transition plan is a substantial overhaul of its transmission infrastructure. As an archipelago of over 17,500 islands, the country faces unique challenges in building a nationwide grid.

As part of the RUPTL, PLN will construct approximately 48,000 kilometers of new transmission lines—exceeding the Earth’s circumference—with a substation capacity of 108,000 MVA. This infrastructure is intended to connect remote areas and facilitate an inclusive energy transition.

Minister Lahadalia stressed that electrifying off-grid villages is a top priority.

“For me, energy is not just a utility, but a matter of justice and equity from Aceh to Papua,” he stated. “Under President Prabowo Subianto’s directive, we aim to electrify all unelectrified villages by 2029, beginning immediately.”

Through the Village Electricity Program, PLN plans to power more than 5,700 remote villages and connect nearly 780,000 households.

Nuki Agya Utama, Executive Director of the ASEAN Centre for Energy, explained on that Indonesia’s grid system is fragmented by necessity, with each major island operating independently, unlike the more integrated continental grids in the U.S., China, or Europe. This geographic reality makes inter-island connections expensive and complex, often requiring subsea cables that face environmental and logistical challenges.