Indonesia’s energy sector experienced a regulatory framework transformation with the release of the highly anticipated Presidential Decree No. 112 2022 on the Acceleration of Renewable Energy Development for Supply of Power. The regulation signals the Government of Indonesia’s commitment to accelerate its energy transition and articulates a plan for doing so.

PLN Leadership

The comprehensive JETP Investment and Policy Plan scheduled for release in August 2023 will determine the policy reforms necessary to achieve Indonesia’s climate targets. Enabling policies will address tariff setting; local content requirements; power purchase agreements; supply side incentives; permitting requirements; procurement strategies and processes; local renewable energy manufacturing development; and other enabling reforms that PLN will play a key role in implementing.

Impact

PLN implementation of the Investment and Policy Plan will result in more efficient and equitable energy services, starting with clean and reliable generation. It will also catalyze investment and accelerate the development of a vibrant and competitive local industry in renewable energy and energy efficiency.