Inter-island electricity connections through transmission are urgently needed to supply energy, with the government striving to maximize the potential of new renewable energy of solar power to hydro power.

Septian Hario Seto, Executive Secretary and Member of the National Economic Council (DEN), said that Indonesia needs US$20 billion (Rp321 trillion) to build a transmission line connecting the islands.

He said that the government cannot rely on international aid schemes to build transmission. The government will rely more on the State Budget (APBN) to build electricity network transmission as a result.

"We have to rely on funding from the APBN, because I think this is essential," Seto said on Tuesday, December 17, 2024.

The government can also auction green electricity transmission network development projects to the private sector. That way, the government only needs to prepare the tariffs paid by companies using the network.

"Later it will be compensated with the income paid to the government, how much per Kwh," he said.

Challenges

Seto said the geographical conditions and the spread of new and renewable energy (EBT) sources are a challenge for Indonesia in maximizing the potential of green energy.

The reason is because until now Indonesia does not have a transmission network that is capable of connecting energy sources and energy users.

"The problem is that the hydroelectric power plants in Java and Sumatra are small, unlike Kalimantan which has a large capacity," Seto said.

The Ministry of Energy and Mineral Resources (ESDM) said that Indonesia needs an investment of Rp1,200 trillion to build EBT power plants and transmissions for the next 10 years.

Yuliot Tanjung, Deputy ESDM Minister said that Indonesia must develop a transmission that is long enough to be able to utilize electricity sources from EBT.

He said that in the next 10 years, Indonesia will need a transmission of more than 50,000 kilometers, including extra high voltage transmission of around 500 kilowatts (KW) along more than 10,000 kilometers of circuits.