Indonesia govt moves to overhaul PLN, accelerate solar
JAKARTA, thekabarnews.com—President Prabowo Subianto has ordered a comprehensive transformation of state electricity company PT PLN. Prabowo is placing business-model reform and operational...
JAKARTA, thekabarnews.com—President Prabowo Subianto has ordered a comprehensive transformation of state electricity company PT PLN. Prabowo is placing business-model reform and operational efficiency at the center of Indonesia’s plan to accelerate 100 gigawatts of solar power.
Prabowo issued the directive during a meeting at the Merdeka Palace in Jakarta on Wednesday, Oct. 14. Coordinating Downstream and Energy Transition Minister Bahlil Lahadalia attended the meeting. In addition, Investment and Downstreaming Minister Rosan Roeslani and PLN executive Suroso Isnandar were present.
“We discussed how to accelerate PLN’s transformation so it becomes better, faster and more responsive,” Rosan said after the meeting.
According to the Presidential Secretariat, Prabowo asked officials to prepare a revised business model and present it to him for further action. The review will examine how PLN can improve productivity. At the same time, it aims to reduce the subsidy burden.
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Danantara Indonesia will work with PLN to conduct the assessment. Rosan said the state asset-management body and the electricity company would review the utility’s operations. Afterward, they will submit detailed transformation proposals to the president.
The government also wants PLN to strengthen its emergency preparedness following technical disruptions in several regions. Officials will review the company’s contingency plans to maintain reliable electricity services during equipment failures or other emergencies.
Suroso attended the palace meeting in his capacity as PLN’s director of project management and renewable energy. An extraordinary shareholders’ meeting later on Wednesday appointed him as president director, replacing Darmawan Prasodjo. Suroso will temporarily retain his previous position until PLN appoints a successor, according to The Jakarta Post.
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The transformation is expected to support Prabowo’s 100-gigawatt-peak solar program, which he officially launched in Jembrana, Bali, on Aug. 25. The first phase covers 14 solar projects with a combined planned capacity of 5.3 GWp. These projects will be spread across Java, Bali, Bangka Belitung and the Riau Islands.
PLN has also started the procurement process for the 1.225-GW Mentari Nusantara I solar project. The utility said its consolidated procurement model should improve project economics and make the program more attractive to investors.
However, meeting the broader 100 GW target will require more than installing solar panels. PLN must strengthen transmission infrastructure and energy storage. In addition, it must ensure that new capacity can operate reliably across Indonesia’s fragmented electricity systems.
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During the palace meeting, Bahlil also briefed Prabowo on the oil and gas bill, recent electricity disruptions and fuel distribution. He said Indonesia had sufficient national fuel stocks for between 16 and 18 days. However, local distribution problems had caused queues at some filling stations in Bali.
“There is no problem with national stocks, so distribution may have experienced a slight disruption,” Bahlil said.
The presidential directive sets PLN an ambitious dual task: improve its finances and reliability while rapidly expanding renewable energy. Its success will ultimately depend on measurable reforms and credible project schedules. Moreover, it will require an electricity network capable of absorbing large amounts of solar generation.
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