This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Tempo.co - Proyek kelistrikan PLN diproyeksikan Rp3.000 triliun
3 June 2025
President Director of PT PLN (Persero), Darmawan Prasodjo, projects that the implementation of the Electricity Supply Business Plan (RUPTL) for 2025–2034 could significantly boost economic growth. He stated that the Rp3,000 trillion electricity projects have the potential to increase Indonesia’s annual economic growth by up to 1.4%.
"The execution of the RUPTL is not just about electricity supply—it serves as a key driver of economic expansion. Its contribution to economic growth could exceed one percent per year," Darmawan said during a live broadcast of the Dissemination of the National Electricity General Plan (RUKN) and RUPTL at the Directorate General of Electricity, Ministry of Energy and Mineral Resources (MEMR), Jakarta, on Monday, 2 June 2025.
In his presentation, Darmawan noted that Indonesia’s current gross domestic product (GDP) stands at approximately Rp22,000 trillion. To achieve a one percent economic growth rate, an additional Rp220 trillion in GDP is required annually.
With an annual RUPTL investment of Rp300 trillion, he stated that the programme would make a substantial economic impact. Beyond direct investment, the availability of electricity from this initiative will serve as a foundation for attracting strategic investments in sectors such as data centres, industry, and other key areas.
"Reliable and affordable electricity is essential for drawing new investments. If power supply is dependable, industries will thrive, and digitalisation through data centres will accelerate, further driving economic growth," he explained.
In addition to stimulating economic growth, Darmawan projected that the 2025-2035 RUPTL would generate substantial employment opportunities, estimating the creation of up to 1.7 million jobs over its ten-year implementation period.
He elaborated that these jobs would be spread across various sectors, including power generation, transmission, and distribution. Approximately 836,000 jobs would be absorbed in power generation, while 881,000 positions would be involved in the construction and management of transmission and distribution infrastructure.
Darmawan highlighted that 91% of the jobs in the power generation sector would be classified as green jobs, aligning with the transition towards clean energy.
"This does not yet include indirect economic effects. Infrastructure projects spur local economic activity, from food vendors to service providers. This is the multiplier effect we are referring to," he stated.
He expressed confidence that the RUPTL will not only support the energy transition but will also become a key engine for national economic growth. "We believe this RUPTL serves as a crucial foundation for achieving Indonesia’s vision of 8% economic growth," Darmawan added.
The RUPTL document outlines the government’s target for renewable energy-based power plants to reach a capacity of 42.6 gigawatts (GW), representing 76% of total additional capacity by 2034. Of the total 69.5 GW of new capacity planned over the next decade, 61% will come from renewable energy, 15% from energy storage systems, and 24% from fossil fuels.
Minister of Energy and Mineral Resources (MEMR), Bahlil Lahadalia, stated that power plant development will be executed in two phases. In the first five years, power generation will comprise 45% fossil energy, 44% renewable energy, and 11% storage systems. In the subsequent five years, the composition will shift to 10% fossil energy, 73% renewable energy, and 17% storage. To support the energy transition, the government also plans to construct nearly 48,000 kilometres of transmission networks and substations with a capacity of 107,950 MVA.
Bahlil explained that the RUPTL is designed to enhance national energy security and support an annual economic growth target of 8%. The government anticipates electricity demand will rise to 205 terawatt-hours (TWh) between 2025 and 2034, driven by expansion in the industrial, tourism, and fisheries sectors, as well as the adoption of electric vehicles.
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