Jakarta. Sovereign investment fund Danantara Indonesia has signed a preliminary agreement with state-owned utility company Perusahaan Listrik Negara (PLN) to accelerate investment in renewable energy projects, as Southeast Asia’s largest economy pushes to scale up green power capacity.

Danantara, through its investment arm Danantara Investment Management (DIM), on Monday signed a Head of Agreement (HoA) with PLN. The agreement sets out a framework for exploring potential investments in green power plants developed by PLN subsidiaries, including PLN Nusantara Renewables and PLN Indonesia Power Renewables. Details on the size, structure and timing of investments will be determined following due diligence and in line with prevailing regulations, the statement said.

Danantara Chief Investment Officer Pandu Sjahrir said the partnership reflects the institution’s commitment to strengthening Indonesia’s energy security while addressing climate change.

“The signing of this HoA marks an important milestone in exploring large-scale strategic investment needs to accelerate reliable renewable energy development and strengthen Indonesia’s energy self-sufficiency and green transformation,” Pandu said.

He added that Danantara’s role will go beyond providing capital. The fund plans to work closely with PLN to identify and help resolve on-the-ground project development challenges, improve access to competitive financing and support the creation of so-called green jobs.

“Collaboration with PLN allows alignment between investment capability and operational readiness in the power sector,” Pandu said. “As a strategic investment institution, we aim not only to provide financing but also to actively support project execution.”

The collaboration aligns with Indonesia’s latest 10-year power supply business plan (RUPTL 2025–2034), which targets the addition of 70 gigawatts (GW) of new generation capacity over the next decade. About 76% of that capacity is earmarked for renewable energy sources, underscoring the government’s push to rebalance an energy mix still dominated by coal.

PLN estimates that the first phase of capacity additions — around 20 GW — will require investment of roughly Rp 600 trillion ($36 billion).

PLN President Director Darmawan Prasodjo welcomed Danantara’s involvement, describing it as a boost to the financing structure of Indonesia’s national renewable energy pipeline.

“Energy transition cannot be carried out in isolation,” Darmawan said. “It requires strong collaboration and sustainable financial support. Danantara’s presence strengthens PLN’s efforts to develop renewable energy in a more structured way and ensures green projects under the RUPTL can be delivered on time and generate long-term benefits.”