The Indonesian Ministry of Energy and Mineral Resources (MEMR) has unveiled its long-anticipated 2025–2034 Electricity Business Plan (RUPTL), marking a significant moment for the country’s energy transition.
The plan outlines targets: a 67 percent increase in electricity demand by 2034, requiring 69.5 GW of new generation capacity — 61 percent of which will come from renewable energy sources. This includes 17.1 GW of solar, 11.7 GW of hydropower, and 7.2 GW of wind, alongside significant investments in geothermal, bioenergy, and energy storage.
The new RUPTL appears to be a green leap forward, signaling Indonesia’s intent to pivot from fossil fuels toward a more sustainable energy future. The ban on new coal plants, the projected creation of over 836,000 green jobs, and the USD 182 billion investment needed for infrastructure expansion all point to a major transformation.
The previous “green RUPTL” (2021–2030) also promised a strong push for renewables, but actual deployment fell far short. Renewable energy projects faced repeated delays, regulatory bottlenecks, and financing challenges — issues that could once again stall progress if left unaddressed, Dody Setiawan, Senior Analyst Climate and Energy of global energy think tank Ember, said.
The latest RUPTL’s structure raises some familiar concerns. Over 70 percent of renewable capacity additions are scheduled for the second half of the plan period, echoing a pattern seen in earlier plans where targets were deferred toward the end of the decade. As deadlines loomed, execution faltered, leaving Indonesia off-track for its renewable energy goals, including the 23 percent RE target by 2025.
Critical Questions Remain:
Are systemic barriers — such as land acquisition challenges, regulatory uncertainty, or financing risks — being meaningfully addressed?
Will the procurement and execution of renewable energy projects improve under this new plan, or will delays persist?
Can the government and PLN build the necessary capacity, both technical and institutional, to ensure timely project delivery?
The investment opportunity is immense. With an estimated USD 103 billion required for renewable energy projects alone, there is a clear opening for Indonesian energy companies and financial institutions to diversify portfolios and reduce their exposure to fossil fuel risks. But the realisation of this vision hinges on creating a more enabling investment climate, ensuring policy consistency, and building a skilled workforce capable of delivering complex renewable energy projects.
Ultimately, the new RUPTL offers hope — but it is only a blueprint. Turning it into reality will require a fundamental shift in how Indonesia approaches renewable energy: from ambition to action, from policy to implementation.
GreentechLead.com News Desk