Accelerating renewables investment in Indonesia

This report explores how Indonesia can increase private investment in renewable electricity through shared use of the country's power network.

Indonesia is striving to drive up its renewables capacity, with a target of an additional 75GW on the grid by 2040, and an end to coal power by the same date. President Prabowo of Indonesia has also set out a 'Golden Indonesia 2045' goal, targeting 8% annual economic growth. To achieve these goals, Indonesia must attract private investment.

The shared use of Indonesia's transmission and distribution lines offers a promising solution that could unlock significant investment in renewables in Indonesia from large, international companies – including from the 130+ businesses in Climate Group’s RE100 campaign. With the right structure and incentives, PLN, the state utility, can successfully lease its transmission lines to private sellers and buyers. In order to tap into this investment opportunity, this report recommends that the Government of Indonesia:

Include language supporting shared use of Indonesia's transmission and distribution lines in relevant national policies and plans, including the upcoming New and Renewable Energy Bill (RUU EBET) and PLN’s Electricity Supply Business Plan (RUPTL PLN).
Uphold the key principles of the market and ensure PLN remains integral to the energy system.
Under existing market regulations, develop and implement a scheme for the joint use of the transmission network.
Work towards longer term regulatory transformation that maximises the potential of shared use of the transmission network in Indonesia.

"Shared use of the transmission and distribution network has the potential to rapidly increase private investment in Indonesia's renewable future. With 130+ RE100 members operating in the country, the demand for renewable electricity is already there – what’s now needed is an energy market that can help Indonesia keep pace with neighbouring countries and enable its leading stance on coal retirement, and its Golden Indonesia 2045 vision, to become reality. In partnership with PLN, RE100 members are ready to grow the grid and create a win-win for business and government.”

Ollie Wilson, Head of RE100, Climate Group

This report explores how shared use of Indonesia's power network would be a win-win, helping corporates achieve their renewable energy targets, while offering a predictable, long-term revenue stream for PLN. Indonesia’s neighbours, including Vietnam and Malaysia, have introduced similar systems, enhancing their international competitiveness and driving renewables growth.

This report was produced in partnership with RE100's local campaign partner in Indonesia, the Institute for Essential Services Reform (IESR), and the Institute for Energy Economics and Financial Analysis (IEEFA).

Learn more about RE100's policy engagement work in Indonesia on this webpage.