- Kadin endorsed PLN’s plan to issue green bonds as a strategic step to finance renewable energy transmission in Indonesia.
- Business leaders warned that rising demand makes green financing crucial, with PLN targeting 76% renewables by 2034.
Indonesia’s Chamber of Commerce and Industry (Kadin) said state utility PT PLN’s (Persero) plan to issue green bonds is a strategic step to accelerate renewable energy transmission and strengthen investor confidence.
Kadin Deputy Chairman for Energy and Mineral Resources Aryo Djojohadikusumo told an energy forum in Jakarta that transmission funding remains the biggest hurdle in Indonesia’s energy transition. He noted that the internal rate of return on transmission projects is about 6%, which is too low to attract private capital.
“PLN must take the lead, and green bonds are the right instrument to support this funding,” Aryo said. “With green bonds, PLN is not only expanding its green transmission network but also sending a signal that Indonesia is serious about accelerating the energy transition.”
PLN’s Senior EVP for Legal, Regulatory and Compliance, Nurlely Aman, said the utility’s 2025–2034 business plan targets 76% of additional capacity from renewables, with independent power producers expected to provide more than 70% of the investment. He stressed that PLN cannot execute the plan alone and requires private sector support.
Business leaders also highlighted the urgency. Bosowa Corporindo CEO Subhan Aksa said power demand in South Sulawesi is rising 9% annually, while extreme weather has threatened hydro supply. “This proves that renewable energy is not a burden, but an opportunity. However, without regulatory support, the private sector cannot operate optimally,” he said.
Lucas Adrian, VP Operations at DCI Indonesia, warned that data centres, expected to grow by 20% annually, are major electricity consumers requiring a reliable and green supply to maintain service standards.
Indonesia estimates it will need Rp3,000 trillion ($190 billion) for power plants and transmission. Officials and industry players said green bonds could help PLN mobilise international financing and anchor the country’s transition to low-emission energy.