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Indonesia Pushes Local Power Projects to Expand Electricity Access in Remote Areas

Bambang Ismoyo
July 23, 2025 | 4:55 pm
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ESDM spokesperson Dwi Anggia speaks at the Energy and Mineral Festival in Jakarta, Wednesday, July 23, 2025. (Investor Daily/David Gita Roza)
ESDM spokesperson Dwi Anggia speaks at the Energy and Mineral Festival in Jakarta, Wednesday, July 23, 2025. (Investor Daily/David Gita Roza)

Jakarta. The Energy and Mineral Resources (ESDM) Ministry is accelerating efforts to bring electricity to all corners of Indonesia, including its most remote regions, by encouraging the development of power plants based on local resources.

ESDM spokesperson Dwi Anggia said limited access to electricity remains a challenge in the archipelago's outermost, frontier, and disadvantaged regions, where state utility PLN often faces operational and logistical hurdles.

“There are areas categorized as 3T (frontier, outermost, and disadvantaged) or remote areas that still lack electricity. PLN cannot reach every location,” Dwi said during the Energy and Mineral Festival in Jakarta on Wednesday.

To address this, the ministry is promoting the construction of power plants that utilize local renewable resources. For instance, regions with strong river currents are encouraged to build micro-hydro plants, while areas with geothermal potential will develop geothermal power plants.

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“We are pushing for power generation based on local renewable energy potential, whether it’s micro-hydro, solar, or geothermal. Even if small in capacity, these projects can significantly benefit local communities,” she said.

The initiative is part of Indonesia’s push for energy self-sufficiency, in line with President Prabowo Subianto’s vision of reducing dependence on imported energy. The government is pursuing a dual strategy of boosting oil and gas production while transitioning to renewable energy sources.

In the oil and gas sector, the government has issued a new regulation (ESDM Regulation No. 14/2025) to facilitate collaboration on managing oil wells, including partnerships with local government enterprises, cooperatives, and small businesses. The policy is expected to increase national oil output by 10,000 to 15,000 barrels per day, particularly through community-led management of aging wells.

Meanwhile, Indonesia’s 2025-2034 Electricity Supply Business Plan (RUPTL) sets a target for renewable energy and energy storage systems to account for 76 percent of the planned 69.5 gigawatts (GW) of additional power generation capacity. This includes 42.6 GW from renewables, 10.3 GW from energy storage, and 16.6 GW from fossil fuel plants.

Renewable energy projects will include 17.1 GW of solar power, 11.7 GW of hydropower, 7.2 GW of wind power, 5.2 GW of geothermal energy, 0.9 GW of bioenergy, and 0.5 GW of nuclear power. These projects will be distributed across Indonesia, with Java-Bali targeted for 19.6 GW, Sumatra 9.5 GW, Sulawesi 7.7 GW, Kalimantan 3.5 GW, and Papua-Maluku-Nusa Tenggara 2.3 GW.

“With this roadmap, Indonesia is not only strengthening national energy security but also advancing toward a sustainable green economy,” Dwi said.

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