PwC Indonesia and APLSI release 2026 Power Survey, highlighting a collaborative path to energy security

• Indonesia's energy transition is gaining momentum, with 76% of planned additional capacity expected to come from renewable energy and storage.
• Delivering Indonesia’s accelerated renewable energy pathway will require major capital mobilisation, averaging an estimated IDR 278 trillion per year, or IDR 2,780 trillion over 2025–2034.
• Improving project bankability remains a key industry priority, with respondents identifying Power Purchase Agreement (PPA) framework and procurement process reform (34%), alongside adjustments to tariff structures for renewable energy (34%), as the leading measures to attract greater private investment.
• Independent Power Producers (IPPs) are central to Indonesia’s energy transition, with 71% of new generation capacity allocated to IPPs and private developers expected to deliver 90% of planned renewable capacity.
• Survey respondents highlight the importance of storage technologies to support the expansion in variable renewable energy and the need for clear tariffs and commercial terms for storage projects.

Jakarta, 1 October 2026 – PwC Indonesia and the Indonesian Independent Power Producers Association (Asosiasi Produsen Listrik Swasta Indonesia/APLSI) have released a joint report titled Powering the Nation: Indonesian Power Industry Survey 2026. Drawing on the perspectives of power industry participants, the report examines the commercial and implementation considerations shaping Indonesia’s power sector and its transition towards reliable, affordable and sustainable electricity generation.

As Indonesia's electricity demand continues to grow, collaboration among industry players, government institutions, financiers, and the broader community will be critical to delivering the energy infrastructure needed to support long-term economic growth. Indonesia's energy transition is not only about expanding renewable energy capacity, but also about ensuring energy security, affordability, and reliable access to electricity for households and businesses across the country.

A significant transformation is underway in Indonesia’s power sector. Under the 2025–2034 Electricity Supply Business Plan (Rencana Usaha Penyediaan Tenaga Listrik/RUPTL), 76% of planned additional capacity is expected to come from renewable energy and storage.

Delivering this transition will require substantial investment. Indonesia’s accelerated renewable energy pathway is estimated to require an average annual investment of approximately IDR 278 trillion, equivalent to around IDR 2,780 trillion over 2025–2034. The scale of investment required presents significant opportunities for investors, developers, financiers, and industry participants to support Indonesia's long-term energy transformation.

The survey findings suggest that improving project bankability remains a key industry priority. Respondents identified PPA framework and procurement process reform (34%), alongside adjustments to tariff structures for renewable energy (34%), as the leading priorities for attracting greater private investment into Indonesia’s power sector. These findings highlight the importance of creating commercially viable conditions, enhancing investment certainty, and strengthening the overall attractiveness of power projects to mobilise capital at the scale required.

Sacha Winzenried, PwC Indonesia Energy, Utilities & Resources and Energy Transition Director, notes, "Indonesia is entering a pivotal decade for its power sector. With 76% of planned additional capacity expected to come from renewable energy and storage, the country has set an ambitious course towards a lower-carbon energy future. Realising this ambition will require substantial investment, supportive policies, and strong collaboration across the public and private sectors. Strengthening project bankability will be critical to unlocking the private capital needed to accelerate the transition while ensuring energy remains reliable and affordable. We hope these insights help stakeholders advance a reliable, affordable, and sustainable energy future for Indonesia."

To help deliver the transition, the 2025–2034 RUPTL positions IPPs at the centre of Indonesia’s energy transformation, allocating 71% of new generation capacity to IPPs, including 90% of planned renewable capacity to private developers. As a result, IPPs are expected to play a critical role in developing new capacity, deploying innovative technologies, and supporting Indonesia's growing electricity needs while maintaining system reliability and affordability.

Affordability for consumers must remain central to the energy transition. As investments in new generation capacity, grid infrastructure, and energy storage accelerate, stakeholders across the power sector are focused on ensuring that system modernisation is undertaken in a cost-effective manner. Careful planning and optimisation of future power supply additions will be essential to maintaining stable and affordable electricity costs for Indonesian households while supporting the country's sustainability objectives.

Against this backdrop, APLSI members remain committed to supporting Indonesia's growing electricity needs and the implementation of the RUPTL 2025–2034. Collectively, APLSI members operate approximately 20 GW of power generation capacity across different technologies. APLSI believes Indonesia's power-sector development must balance energy security, reliability, affordability and sustainability, while creating commercially viable conditions that enable private investment in new generation, storage and supporting infrastructure.

Eka Satria, Chairman of APLSI, stated, "Indonesia will need significant investment in its power sector over the next decade to support economic growth and rising electricity demand. With 71% of new generation capacity allocated to IPPs, the private sector has an important role to play. Our priority is to work constructively with the Government, PLN and other stakeholders to ensure that projects are investable, bankable and executable, while maintaining the reliability, affordability and sustainability of Indonesia’s electricity supply. This survey gives us a practical industry perspective on what needs to improve—from procurement and PPAs to risk allocation and pricing—so that Indonesia’s ambitious power plans can be translated into real projects."