Indonesia Uses Only 9.4 GW of Its 3,686 GW Renewable Energy Potential

by Linda

TEMPO.CO, Jakarta – The Director of New and Renewable Energy at the State Electricity Company (PLN), Suroso Isnandar, stated that Indonesia possesses abundant sources of renewable energy, including solar, hydro, bioenergy, wind, geothermal, and marine energy.

These renewable energy sources collectively have a potential capacity of 3,686 gigawatts (GW), yet Indonesia has only utilized 9.4 GW. “This is a challenge on how we can actually realize this potential,” Suroso said during the launch of Electricity Connect 2025 in Jakarta on Tuesday, October 7, 2025.

He explained that the majority of PLN’s electricity supply still comes from Coal-Fired Power Plants (PLTU), which contribute 66 percent of the supply, followed by Gas-Fired Power Plants at 17 percent. Suroso stressed that PLN aims to shift away from fossil fuels. “We must make a 180-degree turn from prioritizing fossil fuels to now embracing renewable energy. It has to change,” he asserted.

Echoing this commitment, the Minister of Energy and Mineral Resources, Bahlil Lahadalia, previously stated that the implementation of the Electricity Supply Business Plan (RUPTL) 2025-2034 has the potential to unlock significant investment, particularly in the renewable energy sector. He estimated that the total investment opportunities over that period could reach Rp2,967.4 trillion.

Bahlil detailed that this investment is divided into three main areas. The generation sector contributes the most, with a value of Rp2,133.7 trillion. Transmission network development accounts for Rp565.3 trillion. The remaining Rp268.4 trillion is allocated for other supporting sectors.

The Minister targets that the majority, around 73 percent, of the investment in power generation will involve the private sector through the Independent Power Producer (IPP) scheme, with PLN directly executing the rest.

Bahlil emphasized the job creation potential, stating, “In the generation sector alone, of approximately 836,000 workers needed, more than 790,000 of them or 91 percent are green jobs. This presents a great opportunity for young people who want to be involved in the energy transition,” he said during a press conference for the RUPTL 2025-2034 launch on Monday, May 26, 2025.

These significant investment opportunities, Bahlil continued, align with the government’s commitment to promote energy transition by strengthening the renewable energy mix in the national electricity system. The RUPTL 2025-2034 sets a target for adding 69.5 GW of generation capacity: renewable energy dominates with 42.6 GW (61 percent), energy storage systems are targeted at 10.3 GW (15 percent), and fossil energy accounts for 16.6 GW (24 percent).

Furthermore, the construction of power plants is planned in two phases. While the first five years show a balanced composition (44 percent renewable energy, 45 percent fossil fuels, 11 percent storage), the second phase will shift the focus, with renewable energy proportion reaching 73 percent, and the use of fossil fuels dropping to 10 percent.

Overall, the RUPTL projects are expected to create 1.7 million new job opportunities, primarily in the power generation and electricity network sectors. Bahlil underscored that the majority of these are green jobs, supporting the development of clean and sustainable energy.

Nandito Putra contributed to the report

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