Indonesia’s Power Sector Requires $175 Billion in Investments Over the Next Decade

Indonesia will require an estimated 2,900 trillion rupiah (about $175 billion) in investment over the next decade to satisfy its electricity supply requirements, with the majority anticipated to originate from the private sector, as stated by the Ministry of Energy and Mineral Resources (ESDM) on Wednesday. ‘For the next 10 years, we are aiming for approximately 2,900 trillion rupiah in total investment, and 70% of that will be contributed by the private sector,’ shared M. Pradana Indrasaputra, special staff to the energy minister, during Indonesia’s Road to Mining Day 2025 event. Transmission infrastructure has been highlighted as a key challenge in Indonesia’s electricity ecosystem, necessitating substantial financial and technological backing. ‘One of the weaknesses in our electricity ecosystem is transmission. Therefore, we have urged PLN to lead the development of transmission networks,’ he noted, referring to the state-owned power firm PT PLN. By focusing on large-scale investments and infrastructure expansion, the government aims to improve energy access, affordability, and sustainability throughout Indonesia. ‘Opening access to electricity nationwide is one of our main priorities for the next five years,’ he emphasized.