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Geothermal power is a key focus for Indonesia's renewable energy development. (Photo: PLN)
Indonesia has unveiled its updated National Power Supply Plan (RUPTL), projecting an additional 71 GW of installed capacity over the next decade, with a focus on solar, hydropower, and geothermal energy to drive renewable power generation. The plan targets increasing the share of renewable energy to 35% of the country’s total energy mix by 2034.
Renewables to dominate new capacity
According to the state-owned electricity company PLN’s plan, renewables will account for 70% of the new installed capacity, with the largest increase coming from solar (17 GW), followed by hydropower (16 GW) and geothermal (5 GW). The remaining 12 GW will be sourced from other renewables such as wind and biomass.
However, 30% of the new power will still be based on fossil fuels, including 15 GW of natural gas and 5 GW of coal power. Kartika Wirjoatmodjo, Deputy Minister of State-Owned Enterprises, explained that the new coal power projects are those that were previously delayed, while natural gas plants are essential to support base-load power demand in Java Island. Java is the most populous island in Indonesia and the country's political and economic center.
In terms of total emissions, Indonesia is one of the largest carbon emitters globally. The Prabowo administration has committed to achieving net-zero emissions by 2050 and has recently revised its stance on coal, stating that no new coal plants will be built after 2040. Therefore, the coal plants that continue to move forward must have passed the review process or include emission reduction plans in line with natural resource management.
Kartika emphasized that renewable energy would account for 35% of the total energy mix by 2034, a significant increase of 23% from the current share. The updated plan has already been submitted to the relevant ministries for discussion and will be made public after final approval.
Cirata Floating Solar Power Plant, launched in Indonesia in 2023. According to the upcoming updated RUPTL, solar, hydro, and geothermal energy will become the primary renewable power sources. (Image: Indonesian government website)
PLN struggles to meet renewable energy targets
Despite the government’s commitment to strengthening renewable energy development, the actual implementation of these plans remains a challenge.
A report released by the Institute for Energy Economics and Financial Analysis (IEEFA) at the end of last year highlighted PLN's underperformance in meeting renewable energy targets. In the previous RUPTL, PLN aimed to add 21 GW of renewable energy capacity but achieved only 0.6 GW per year, far below the target of 2.1 GW.
Analysts noted that a plan to phase out 5,200 diesel power plants, although it completed its first phase of bidding in 2022 and signed a Letter of Intent (LOI), has yet to produce a concrete partnership agreement. Similarly, the “Green Indonesia” (Hijaunesia) energy transition plan has been delayed for two years and remains stuck at the stage of selecting partners.
IEEFA recommends that the Indonesian government thoroughly reform its renewable energy procurement process. This includes strengthening collaboration with institutions like the Indonesia Investment Authority (INA), ensuring access to necessary resources, and enhancing transparency and efficiency in procurement processes. The government should prioritize the selection of projects to secure sufficient land and resources for development.
