Opportunities and challenges of the Indonesian electrification drive - E&Y


PT Perusahaan Listrik Negara (PLN), a state-owned enterprise on behalf of the Government of Indonesia (GoI) as the only permitted legal entity in supplying electricity for public needs, was tasked by President Joko Widodo to establish power plants with a total capacity of 35 GW within the next five years. With PLN responsible for 17 GW, new opportunity opens up to the private parties to undertake the remaining 18 GW. Private parties will create a consortium and operate as an independent power plant (IPP).

For this program, the GoI targets coal to be the main energy source at more than 60% of the energy mix. This is an ambitious and challenging goal and will determine the new cabinet’s ability to deliver its infrastructure development promise.


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