President Director of State Power Utility PT PLN, Darmawan Prasodjo, has suggested that Indonesia needs funds of US$235 billion to connect new renewable energy (EBT) project with electricity demand centers.
He cited that Indonesia has large renewable energy resources, but most of them are located outside Java, while the epicenter of electricity demand is on Java. Therefore, a massive and sophisticated transmission network is needed to connect these energy sources.
“We need to build a transmission network that allows long-distance connections, smart grids, smart control systems, and smart meters. From today to 2040, the costs required are around US$235 billion,” Darmawan said during a panel discussion at the Mandiri Investment Forum (MIF) Indonesia 2025 held at Fairmont Hotel, Senayan, Central Jakarta, on Tuesday, February 11, 2025.
PLN’s efforts to connect renewable energy to Java Island are still facing obstacles. Darmawan cited an example of efforts to utilize geothermal energy from Sumatra which has not yet been successfully distributed to Central Java and East Java − the centers of the largest electricity demand.
“I have tried to relocate geothermal in Sumatra to Central Java and East Java, but have not succeeded because the location of renewable energy resources does not match the industrial center and electricity demand,” he said.
PLN, alongside with the government, has conducted an analysis of infrastructure needs to facilitate the distribution of renewable energy. This analysis was conducted together with the International Energy Agency and the Ministry of Energy and Mineral Resources (ESDM). The results showed that Indonesia needs a transmission network of more than 68,000 kilometers.
“From today until 2034, 48,000 kilometers of transmission network are needed. By 2040, this need will increase to 63,000 kilometers,” Darmawan said.
