- Indonesia plans to add 69.5 GW of power capacity by 2034, including renewables, coal, gas, and nuclear.
- The government aims to invest $235 billion, with significant private sector involvement and new transmission lines to connect remote areas.
- Despite climate goals, coal plants remain part of the mix, while nuclear power will debut with a 0.5 GW plant by 2032.
The Indonesian government revealed a major energy expansion plan. It aims to add 69.5 gigawatts (GW) of electricity capacity by 2034, using a mix of coal, gas, renewables, and nuclear power.
The Ministry of Energy shared the plan, covering ten years from 2025 to 2034. The government estimates the total investment at around IDR 2,967.4 trillion (about $235 billion). State-owned utility Perusahaan Listrik Negara (PLN) will invest IDR 567.6 trillion in new power plants. Meanwhile, the government will open IDR 1,566.1 trillion for private investors.
Renewable energy will play a significant role in the expansion. The plan allocates 42.6 GW of renewable capacity from solar, hydropower, and geothermal sources. It also includes 10.3 GW of new natural gas power plants. The government plans to build 10.3 GW of energy storage infrastructure to support the grid.
Despite efforts to cut emissions, the government will continue to build coal plants. It plans to add 6.3 GW of coal-fired power plants. The government will introduce nuclear power, with a 0.5 GW plant scheduled to start in 2032.
The plan emphasises expanding transmission infrastructure. The government will build 47,758 kilometres of transmission lines. These lines will connect remote energy production areas to high-demand cities, improving power distribution.
The Ministry of Energy explains that these transmission networks will help integrate renewable energy into the national grid. Indonesia stresses linking clean energy sites with high-consumption zones to strengthen the grid’s reliability and resilience.
Although the plan requires significant investments, the government must detail financing mechanisms. It counts on strong private sector participation and encourages public-private partnerships. Officials will soon announce tender processes and fiscal incentives to attract investors.
This energy expansion supports Indonesia’s broader strategy. The government wants to support economic growth while diversifying energy sources. As Southeast Asia’s largest economy, Indonesia faces balancing development with environmental goals.
The government aims for a balanced energy mix by adding renewables and nuclear energy alongside coal and gas. It seeks to ensure a stable power supply while gradually reducing greenhouse gas emissions.
Energy experts say integrating 42.6 GW of renewables presents challenges. The government will need to upgrade grid infrastructure and deploy effective storage solutions. It expects the planned 10.3 GW energy storage to help manage intermittent solar and wind power.
The government highlights the importance of attracting private investment. Opening IDR 1,566.1 trillion to private investors signals a shift toward market-driven energy growth. This approach may speed project development and innovation.
Critics warn that continuing coal plant construction could hinder Indonesia’s climate commitments. However, officials argue that coal provides stable baseload power during the transition to cleaner energy.
Introducing nuclear power marks a new chapter. The government plans to launch the country’s first nuclear facility, a 0.5 GW plant, by 2032. This move shows Indonesia’s intent to diversify beyond fossil fuels and renewables.
In summary, Indonesia’s energy roadmap sets bold and multifaceted goals. The government plans to increase power capacity by nearly 70 GW with a diverse energy mix. It balances investments in traditional fuels and emerging technologies. It also prioritises expanding the grid to connect energy resources with demand centres.
To succeed, the government must secure investment, manage construction, and ensure smooth grid integration. Indonesia could lead Southeast Asia’s energy transition in the next decade with strong private sector support and clear policy incentives.