Technological advancements continue to drive down renewable energy prices, often making electricity from solar and wind cheaper than fossil fuel sources. Renewables power economies while opening markets to private investment, combating the climate crisis and creating local jobs for people in rural and remote areas where industry and employment may be scarce.

PLN Leadership

With support from the International Partners Group and the initial $20 billion in public and private financing, PLN is accelerating the deployment of renewable energy. PLN is exploring several energy transition scenarios to accelerate the deployment of renewable energy. As part of the JETP, PLN will secure renewable solutions for power generation facilities outside Jawa-Bali, including captive power facilities. These solutions are expected to be affordable (priced similarly or better than non-renewable alternatives), reliable (can provide base load), accessible, and timely (can be deployed within similar or better timelines than the non-renewable alternatives). All these factors will balance Indonesia’s imperative for industrial development and economic growth with its commitment to net zero.

As part of the transition away from fossil fuels, PLN will abstain from building any new on-grid coal power generation capacity Additionally, with IPG support, PLN is exploring the early retirement of coal-fired power plants as prioritized and identified by the Indonesian Government in the JETP Investment and Policy Plan as a necessary element to achieve Indonesia’s climate targets.

PLN has already made significant progress to achieve energy transition. In its greenest Electricity Supply Business Plan, renewables comprised approximately 52 percent of additional capacity, equivalent to 20.9 GW. PLN established biomass cofiring in April 2023 at 37 coal-fired power plants and will establish up to 52 plants by 2025. This enables PLN to efficiently and cleanly convert biomass to electricity by adding biomass as a partial substitute fuel. PLN replaced 1.8 GW of coal with renewable energy and 800 MW of coal with natural gas. PLN is also in the procurement stage of its de-dieselization program to convert diesel power plants into solar paired with battery energy storage systems (BESS). PLN piloted Indonesia’s first carbon trading trial in 28 PLN power plants. PLN also planned and developed 21 GW of renewable plants under the Green Electricity Supply Business Plan.


Renewable energy will reduce Indonesia’s greenhouse gas emissions, result in long-term cost savings, and help Indonesia achieve energy security where it can generate its own energy and reduce its vulnerability to fluctuations in global fuel prices. Also, renewable energy systems will help Indonesia achieve its goal for universal access to electricity. Communities benefiting from PLN’s de-dieselization program will have reliable, affordable, and sustainable access to electricity.