Energy Ministry Eyes $35 Billion Investment to Expand Electricity Network
Jakarta. The Energy and Mineral Resources Ministry (ESDM) announced a major initiative to develop electricity infrastructure reaching even the most remote areas of Indonesia. Over the next decade, the government plans to build a transmission network totaling 47,758 kilometers of circuit.
Minister Bahlil Lahadalia explained that this transmission network will connect renewable energy power plants to substations owned by the state electricity company, Perusahaan Listrik Negara (PLN), which will then distribute power to customers.
This “Green Enabling Supergrid” plan is detailed in PLN’s 2025–2034 Electricity Supply Business Plan (RUPTL), aiming to facilitate the interconnection of renewable energy sources directly to households across the archipelago. Under the plan, PLN aims to construct about 63,000 kilometers of transmission lines by 2040, with 48,000 kilometers targeted for completion by 2034.
The ministry targets renewable energy to make up 23 percent of the national electricity mix, up from the current 15 percent.
“To connect renewable energy, we must have a network. Our target for renewables is 23 percent, but currently, it is only 15-16 percent. We have programs for renewable energy, but the network has been lacking,” Bahlil said on Friday.
Among the planned transmission developments, the Java, Madura, and Bali regions will see the longest stretches of network expansion.
Bahlil also stressed the significant investment opportunities from the project, estimating a total of Rp565.3 trillion ($34.67 billion). The project is expected to create 881,132 jobs across manufacturing, construction, operations, maintenance, and distribution sectors.
To boost the economy and create jobs, the minister emphasized maximizing the use of domestic content (Tingkat Kandungan Dalam Negeri, TKDN) in the development of transmission lines and substations, aiming to minimize imports.
“I hope there will be no imports. All domestic industries should be maximized,” Bahlil concluded.
Tags: Keywords:Related Articles
PLN Rushes Coal Supplies After Power Outages Hit Java
PLN is rushing to secure coal supplies after shortages triggered rolling blackouts across Java, disrupting businesses and daily life.Indonesia Allocates Rp 10.3 Trillion to Bring Electricity to Thousands of Villages
Indonesia will spend Rp 10.3 trillion in 2026 to expand electricity access to thousands of underserved villages.Indonesia Faces Medium-Calorie Coal Supply Shortage for Power Plants, Minister Says
Indonesia faces a shortage of medium-calorie coal for power plants, prompting a review of supply and pricing policies.Indonesia on Track to Launch B50 Palm Oil Biodiesel in July
Indonesia has done road trials on heavy equipment and trains as the country will soon mandate the use of B50 palm oil-based biodiesel.No CNG Allocation in 2027 Budget as Indonesia Seeks to Cut LPG Imports
Indonesia's 2027 budget keeps LPG subsidies unchanged, with no dedicated funding for the planned CNG transition.Indonesia Allocates $84.6 Million for Electric Stoves and E-Motorcycle Conversion Program
Indonesia will spend Rp 1.5 trillion on electric stoves and e-motorcycles to cut fuel imports and boost clean energy use.Indonesia Spends Rp 120 Trillion a Year on LPG Imports, Pushes Electric Stove Program
The initiative is also intended to reduce the fiscal burden of subsidizing 3-kilogram LPG cylinders widely used by low-income households.Indonesia Eyes Up to 19 Million Kiloliters of Subsidized Diesel in 2027
Subsidized diesel remains heavily supported by the government and is currently sold at Rp 6,800 ($0.38) per liter.Bahlil Rejects Coal Shortage Claims Behind Widespread Power Outages
Bahlil says recent power outages were caused by technical issues, not coal shortages, with domestic supplies remaining secure.Indonesia Holds Subsidized Fuel Prices as Drivers Abandon Pertamax
Indonesia kept subsidized fuel prices unchanged despite a steep Pertamax hike that triggered long queues for cheaper fuel.The Latest
Dear Mr. President, Don’t Skip ASEAN Summits
Despite calls for Prabowo to stay home, the Indonesian leader still needs to attend ASEAN summits.PLN Rushes Coal Supplies After Power Outages Hit Java
PLN is rushing to secure coal supplies after shortages triggered rolling blackouts across Java, disrupting businesses and daily life.Japan-Backed ADB Invests in Indonesia’s Human Capital
As many as 399 Indonesian awardees have joined the ADB-Japan Scholarship Program from 1988 to 2024.Indonesian Stocks Rise Despite Foreign Outflows as MSCI Review Looms
Indonesia's JCI rose 2.8% as easing geopolitical tensions offset foreign outflows, MSCI concerns and rupiah pressures.World Cup 2026: Paraguay Holds Off Turkey With 10 Men to Keep Knockout Hopes Alive
Matias Galarza scored after 65 seconds as 10-man Paraguay beat Turkey 1-0, eliminating the Turks and securing first place for the US.Most Popular
