Kartika said that the challenge in energy transition in Indonesia is that currently it does not have an inter-island grid, with the electricity sub-system in Indonesia still fragmented.

The challenge in developing renewable electrical energy is that there is a surplus of electricity in Kalimantan and Sumatra. Meanwhile, demand for electricity is high in Java.

"This is a big challenge because currently Java's base load is almost all coal, it takes time to ensure that the transmission is connected first from Sumatra at least, or if not in the future from Kalimantan and that hydro geothermal production is sufficient, then we can make the transition effectively," Kartika said on April 30, 2024.

According to him, this energy transition must be carried out carefully, while the tariff for the electricity produced must be affordable for the community. Then, he said, it must be ensured that State electricity company PT PLN will not experience financial difficulties. Therefore, the Ministry of SOEs wants to share the task with the government, where the government will invest in transmission.

"We will invest heavily in generating companies in the genco, of course 60 percent with private IPPs, 40 percent with internal genco companies, namely Indonesia Power and Nusantara Power," he said.

"So this program perhaps will be the longest and largest program in our country, it will run for almost the next 25 years. The hope is that we will review it annually and ensure that this energy transition program is running well," he added.

Kartika cited that this program will have a broad impact on the economy, which currently requires a very large capital expenditure (Capex) of US$85 billion.