Indonesia Needs Rp 3,000 Trillion Investment to Fully Shift to Clean Energy
Jakarta. Indonesia will require an estimated Rp 3,000 trillion ($179 billion) in investment to achieve full reliance on electricity sourced from renewable energy, according to the Energy and Mineral Resources Ministry.
Jisman Hutajulu, Expert Staff for Strategic Planning at the ministry, said the required capital covers major infrastructure components, including power plant construction, substations, transmission lines, distribution networks, and other supporting systems.
“It will take roughly Rp 3,000 trillion in investment -- this is a very large figure. We are calling on all stakeholders to work hand in hand,” Jisman said in Jakarta on Wednesday.
The push toward clean electricity is considered crucial given Indonesia’s vast renewable-energy potential, estimated at 3,500 gigawatts, and its environmental advantages over fossil fuel–based generation.
Jisman noted that the ministry plans to maximize renewable-energy capacity across the country, reflecting the targets outlined in State Utility PLN’s Electricity Supply Business Plan for 2025–2034.
Under the roadmap, Indonesia aims to add 69.5 gigawatts of new power generation capacity, 47,758 circuit-kilometers of transmission infrastructure, and 107,950 megavolt-amperes (MVA) of substations.
Of the total planned 69.5 gigawatt increase, clean-energy sources will play a dominant role with the following breakdown:
- 76 percent, equivalent to 52.9 gigawatts, will come from renewable energy and energy-storage systems.
- Renewable energy alone will contribute 42.6 gigawatts, or 61 percent of the total.
- Energy-storage systems will supply 10.3 gigawatts, equal to 15 percent.
- The remaining 16.6 gigawatts, or 24 percent, will come from fossil-fuel-based power plants.
The ministry emphasizes that broad collaboration -- including government, state utilities, financiers, and the private sector -- will be critical to closing the funding gap needed to realize Indonesia’s clean-energy transition.
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