Speaking at the Indonesia Investment Forum 2025 in London on Nov. 18, PT PLN business and corporate development executive vice president Abdan Hanif Satria outlined the potential of Indonesia’s renewable energy expansion over the next decade. The National Electricity Supply Business Plan (RUPTL) 2025–2034, described as the “greenest” RUPTL to date, calls for 69.5 gigawatts of additional generation capacity, 75 percent of which will come from renewable sources and storage.

The RUPTL also lays out an investment roadmap of US$130 billion through 2034. PLN is expected to finance only about 25 percent of the required investment, prompting the company to seek deeper participation from both domestic and international private investors to help bridge the funding gap.

“The RUPTL is essentially a project list that allows foreign investors to plan ahead. You can choose the projects that make the most sense, and begin advanced preparations,” Abdan said.

He described several mechanisms designed to make PLN-led projects low-risk and attractive, particularly power purchase agreements that guarantee long-term revenue streams for developers. A key feature of these agreements is PLN’s take-or-pay scheme, under which the utility guarantees the purchase of a fixed amount of electricity for the duration of the contract, regardless of demand. Embedding this mechanism in power purchase agreements allows PLN to absorb most demand and revenue risks that would otherwise discourage renewable investment.

HDF Energy Asia-Pacific executive director and PT HDF Energy Indonesia president director Mathieu Geze shared his perspective on Indonesia’s renewable energy sector from a European investor viewpoint, addressing common concerns among players still unfamiliar with the local electricity landscape.

“I think the ingredients for success are there in Indonesia’s power sector. There is a strong and valuable off taker in PLN, and we have also seen a solid regulatory framework that supports project implementation,” Geze said.

Indonesia, the world’s largest archipelagic nation, he added, presents both challenges and major opportunities. While the country is often perceived as being coal and gas dominated, there are regions with abundant solar and wind resources that are now more accessible than fossil fuel, making them prime locations for renewable development.

Still, tapping this potential requires more than supply-side readiness. Demand-side growth must be equally strong to ensure that renewable energy expansion is sustainable, said Global Renewables Alliance head of corporate sourcing Trigya Singh.

Singh noted that demand from off takers for renewable electricity is surging. Access to green power has become non-negotiable for manufacturers, industrial players and technology firms, especially those seeking to meet global sustainability commitments. This demand has intensified with the rapid rise of artificial intelligence (AI), driving a global boom in data centers, significantly increasing power consumption while requiring that their facilities be supplied by renewable energy.

Many global cloud and AI companies require traceable, certified supplies of renewable energy to meet environmental, social and governance (ESG) requirements, making instruments such as PLN’s renewable energy certificates increasingly important. Abdan said the renewable energy certificates framework provides investors with a credible, internationally recognized system for tracking the environmental value of their projects.

He added that PLN is prepared to meet the energy needs of incoming hyperscalers through dedicated renewable capacity, tailored procurement schemes and long-term contracts, all while maintaining the company’s wider mandate to provide affordable power and ensure grid reliability nationwide.

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