Friday, June 14, 2024

ESDM: Electricity oversupply in Java-Bali drops to 4 GW in 2023

Reading Time: 2 minutes
Audina Nur




The Ministry of Energy and Mineral Resources (ESDM) has recorded a significant decrease in electricity oversupply in Java-Bali region, to 4 gigawatts (GW) by the end of 2023, a substantial reduction from the 7 GW recorded at end of 2022.

Jisman P. Hutajulu, Director General of Electricity at the Ministry of Energy and Mineral Resources, said the ministry is delaying the commercial operation dates (COD) of several power plants to alleviate the take or pay (ToP) burden on State electricity company PT PLN.

“We are endeavoring to postpone the COD of some power plants for two to three years to avoid the accumulation of their take or pay obligations,” said Jisman during a press conference in Jakarta on Thursday. January 18, 2024). Jisman attributed the oversupply to the macroeconomic growth assumptions that deviated from the 35,000 MW megaproject.

When the 35 GW program was initiated, he stated, the macroeconomic growth assumptions ranged from 7 percent to 8 percent. However, the national economic growth over the past decade has consistently remained below 6 percent, significantly deviating from the assumptions used in the 35 GW program.

“Currently, electricity growth is around 5 percent to 6 percent, so this overcapacity issue can be resolved in the next 2 to 3 years,” Jisman said. Additionally, the ministry is encouraging PLN to execute power purchase agreements (PPAs) with private developers that have yet to materialize.

“We encourage the construction of power plants to cover new growth and demand, especially with large-scale smelters in Sulawesi and Java,” he added.

Earlier, the Supreme Audit Agency (BPK) had warned of an alert and deficit status in the national electricity system due to the low realization of power plant construction in PLN’s electricity supply business plan (RUPTL). The report highlighted that the Java-Bali electricity system is predicted to enter an alert condition starting in 2028.

These projections were outlined in the BPK Examination Report on the Performance of Coal, Natural Gas, and Renewable Energy Management in Developing the Electricity Sector to Ensure the Availability, Affordability, and Sustainability of Energy Fiscal Year 2020 Through Semester I 2022 at the ESDM No. 9/LHP/XVII/05/2023 dated May 9, 2023.

Audina Nur






We will provide you with an invoice for your reimbursable expenses.


New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.


$550 USD/Year


$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email

Add keywords to your market watch and receive notification:
No topics
Schedule a free consultation with us:

We’ll contact you for confirmation.


PT Perusahaan Listrik Negara (PLN), Indonesia’s state-owned electricity company, has announced plans to construct three new wind power plants (PLTB) − PLTB Timor, PLTB Tanah Laut, and PLTB Sulbagsel − by 2027 with a combined capacity of 152 MW.
Bali will introduce a Light Rail Transit (LRT) system following the completion of the feasibility study for the project. The initial phase of the LRT will feature a track stretching from Ngurah Rai Airport to the Sunset Road area.
SKK Migas reveals that China has expressed interest in utilizing Enhanced Oil Recovery (EOR) technology to rejuvenate Indonesia’s aging oil fields, potentially boosting production and reserves significantly.
Minister Sakti Wahyu Trenggono, says Indonesia’s vast marine biodiversity remains largely unmapped and underexplored, missing out on significant opportunities for marine biopharmacology.
President Jokowi announced a major boost in foreign investment for the Nusantara Capital City (IKN), following his recent visit to oversee groundbreaking projects and inaugurate key infrastructure in the country’s new capital city.
A number of MoU with a total investment of Rp862 billion (US$53 million) were signed at the 2024 International Tourism Investment Forum (ITIF) regarding a number of tourism infrastructure projects with a number of companies.