Indonesia’s Power Plan Puts Renewables in the Spotlight as Demand Surge

Indonesia’s new 10-year electricity roadmap signals a major clean energy pivot, with 61% of the planned 69.5 GW in additional capacity expected to come from renewable sources. The Ministry of Energy and Mineral Resources projects electricity demand will jump 67%, from 306 TWh in 2024 to 511 TWh by 2034.

According to Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform, the strategy is designed to support national development, ensure long-term power supply, and move the country toward net-zero emissions by 2060 or earlier.

State utility PT PLN (Persero), which supplies over 80% of the country’s electricity, will lead the implementation. Tumiwa noted the plan is “dynamic,” subject to review every two to three years.

Still, the inclusion of new coal projects alongside renewables has sparked criticism. “It sends mixed signals,” said Dinita Setyawati, Senior Energy Analyst for Asia at Ember. “The ambition is there, but excluding coal would show stronger commitment.”

Solar power is expected to dominate with 17.1 GW, though land availability and permitting remain hurdles. Setyawati suggested solutions such as using idle or state-owned land, adopting floating solar, and combining solar with agriculture. She also called for digital permitting, clearer timelines, and risk-mitigation measures.

Tumiwa highlighted that the solar target is modest given the country’s enormous potential. “Seventeen gigawatts is tiny compared to the technical potential of more than 20,000 gigawatts,” he said.

To overcome financial and technical barriers, Setyawati stressed the need for international involvement through expertise, funding, and risk-sharing. Tumiwa estimated that $180 billion will be needed over the next decade to support Indonesia’s renewable ambitions.