- Increasing demand for electricity driven by economic growth
- Backed by strong macroeconomic indicators, higher income levels, increasing urbanization and improving standards of living the electricity demand in Indonesia is expected to grow significantly in the next few years (8.2% CAGR).
- Assuming Indonesia’s electricity consumption per capita would be at similar levels as Malaysia in the future it needs a 600% increase of supply.
- To increase Indonesia’s electrification ratio from 76% in 2013 to 99% in 2020, PLN estimates that Indonesia requires 60 GW of additional power generation capacity by 2022.
- Reducing the cost of generation
- To reduce subsides in power generation, PLN has outlined that the majority of its new capacity will be sourced from non-oil-based fuel and that approximately 10,000 MW of existing oil based power generation will be replaced by coal and natural gas fired projects.
Indonesia government target for additional capacity (in MWe installed capacity)
Power Supply Business Plan PT PLN (Persero)
Indonesia’s per capita consumption of electricity, electrification rate and installed capacity are among the lowest in Asia