Jakarta, CNBC Indonesia – The establishment of PLN's Electricity Supply Business Plan (RUPTL) 2025-2034, which targets a 61% increase in New and Renewable Energy (NRE) power generation capacity — equivalent to 42.6 GW by 2034 — has become a positive catalyst for the future of Indonesia's NRE industry.
Hydropower developer PT Arkora Hydro Tbk (ARKO) welcomed the government's commitment to developing NRE. President Director of Arkora Hydro, Aldo Henry Artoko, stated that the RUPTL 2025-2034 will drive PLN to increase green electricity production, of which 11.7 GW will come from the hydropower sector, presenting significant opportunities for the NRE industry, including ARKO, to accelerate business and investment.
Currently, NRE electricity utilization remains below 23% of existing NRE potential, with the hydropower sector having only tapped 8% of its potential — leaving vast room for development. However, Indonesia still faces various challenges in accelerating NRE development targets toward energy self-sufficiency and the Net Zero Emission 2060 target. Key challenges in the hydropower NRE sector include the remote location of power generation sources from potential markets, with investment costs reaching USD 2-4 million per Megawatt. Additionally, transmission infrastructure still needs to be expanded and strengthened to reach all regions of Indonesia.
For a full discussion on the prospects and challenges of Indonesia's NRE electricity development, watch the dialogue between Shinta Zahara and President Director of PT Arkora Hydro Tbk (ARKO), Aldo Henry Artoko on Squawk Box, CNBC Indonesia (Tuesday, 16/09/2025).
Source: CNBC Indonesia
