Indonesia Unveils 2025–2034 Power Plan, Eyes Expansion of Renewable and Coal Capacity

28 May 2025

Business News
Energy
Energy Transition

Indonesia’s Energy and Mineral Resources Ministry has officially released the country’s 2025-2034 Electricity Supply Business Plan (RUPTL), laying out ambitious targets for expanding the national power grid over the next decade. The roadmap includes a significant boost in both renewable energy and fossil fuel power generation. 

 

Under the plan, state-owned electricity company PLN aims to add 69.5 gigawatts (GW) of new power capacity by 2034. Of that total, 42.6 GW (or roughly 61%) will come from renewable energy sources, while 10.3 GW will be added through storage solutions like batteries and pumped hydro. Meanwhile, 16.6 GW will still be sourced from fossil fuels - 10.3 GW from natural gas and 6.3 GW from coal. 

 

According to the ministry, details on the fossil fuel segment are expected to be released next week. “We’ll likely share the specifics then,” said Electricity Director General Jisman Hutajulu during a press briefing. 

 

In terms of renewable breakdown, solar energy will account for the largest share at 17.1 GW, followed by hydropower (11.7 GW), wind (7.2 GW), and geothermal (5.2 GW). The plan also includes bioenergy (0.9 GW) and nuclear power (0.5 GW) in the mix. 

 

The RUPTL outlines an estimated investment of IDR 2.97 quadrillion (around USD 182.6 billion) for infrastructure development, divided between two five-year phases. From 2025 to 2029, independent power producers (IPPs) are expected to develop projects worth IDR 439.6 trillion, while PLN will invest IDR 306.3 trillion in power plants and IDR 191.1 trillion in transmission and substation networks. 

 

In the 2030–2034 phase, IPP investment is projected to rise to IDR 1.13 quadrillion, with PLN allocating IDR 261.3 trillion for power plants and IDR 201 trillion for grid infrastructure. 

 

Despite the government’s emphasis on a cleaner energy mix, critics argue the inclusion of new coal projects contradicts Indonesia’s long-term energy transition goals. 

 

Tata Mustasya, Executive Director of the Indonesian Sustainable Welfare Foundation (SUSTAIN), criticized the plan, calling it a setback from President Prabowo Subianto’s energy transition pledge made at the 2023 G20 Summit. “This RUPTL risks weakening investor and public trust in Indonesia’s renewable energy agenda,” he said in a statement. 

 

Tata also noted that although the plan touts a 76% clean energy share, it still includes 500 megawatts from nuclear and fails to eliminate future fossil fuel projects entirely. “If this approach continues, the 2040 target to move away from fossil-fueled electricity will be unattainable,” he added. 

 

He urged the government to focus instead on building robust supply chains for solar panels, batteries, and electric vehicles to drive sustainable economic growth and job creation. “What we need are consistent, forward-looking policies - starting with a RUPTL that no longer includes new fossil power plants.”