A decade of transformation: Indonesia’s Energy Roadmap to 2034

Indonesia is embarking on a decade-long transformation of its power sector, with a bold plan to expand renewable energy, modernise its grid, and attract private investment, all while supporting industrial growth and regional development.

Indonesia’s state-owned utility PT PLN has presented its 2025–2034 electricity plan, signalling a major shift in energy strategy. With an investment of around USD 183 billion, the country aims to meet rising demand while accelerating its transition to renewables.

To support this shift, the national grid will be significantly upgraded. A “Green Enabling Super Grid” will be developed to improve connectivity across the archipelago, allowing renewable-rich areas to supply power to major consumption centres. This modernised grid will be designed to accommodate variable energy sources like solar and wind, ensuring stable and efficient distribution as the energy mix evolves.

Over the next decade, Indonesia plans to add substantial generation, storage, and transmission capacity with the majority coming from renewable sources including solar, hydro, wind, geothermal, and biomass. This marks a structural transformation in the country’s energy mix, with a gradual reduction in coal-based projects and a strategic focus on storage solutions.

Private sector participation

The RUPTL marks a significant shift in Indonesia’s energy strategy by opening the door to increased private sector participation. A large share of new power generation will be developed by Independent Power Producers, while PLN will concentrate its efforts on transmission and distribution.

To support this transition, more flexible procurement models are expected to emerge, including joint ventures with PLN subsidiaries and public-private partnerships for grid infrastructure. This approach reflects a broader move toward leveraging private investment and expertise to manage the scale and complexity of the country’s energy transformation.

Smart grid and digitalisation

The plan also includes a multi-phase strategy to modernise Indonesia’s electricity system through smart grid technologies. This involves the rollout of advanced metering, improved management of distributed energy resources, and pilot projects for microgrids in selected regions.

To strengthen inter-island connectivity, high-voltage direct current (HVDC) transmission and flexible AC systems will be introduced. Energy storage will also be integrated into local grids to support the stability and flexibility needed for a renewable-heavy power system.

Investment and employment

Indonesia’s energy roadmap is backed by substantial investment across the entire power system. The majority will go toward building new generation capacity, with additional funding allocated for transmission infrastructure and the expansion of distributed energy solutions, including rural electrification and operations.

This large-scale effort is expected to generate around 1.7 million jobs, with a strong emphasis on sustainability — the vast majority of these roles are classified as green jobs.

Challenges ahead

Although the RUPTL sets out an ambitious vision, several challenges remain. Coal power will not be fully phased out, as certain plants are retained to support industrial operations. The success of the plan depends heavily on securing financing, particularly concessional funding from international partners.

In addition, land acquisition, permitting processes, and the bankability of power purchase agreements may slow progress. Grid congestion and the risk of energy curtailment in solar-rich regions also require careful planning and mitigation.

Conclusion

The RUPTL 2025–2034 serves as a strategic roadmap for one of the world’s largest emerging energy markets. For Swedish companies and other international stakeholders, the coming decade presents opportunities across the entire project lifecycle, from feasibility studies to commissioning, with strong demand for technologies that support reliable, renewable-heavy grids.