On May 26, 2025, after years of anticipation, Indonesia’s energy sector received a major boost : PLN secured the long-awaited approval from the Minister of Energy and Mineral Resources (Minister) for its new general plan for electricity supply (rencana umum penyediaan tenaga listrik or RUPTL) for the period from 2025 to 2034 (the 2025 RUPTL). Officially published on June 3, 2025, this marks the reopening of opportunities for independent private producers (IPPs) particularly for new and renewable energy (NRE) projects.
Themed ‘Beyond the Greenest’, the 2025 RUPTL contemplates that, among other things:
- 61% of new generations would be NRE with storage capacity comprising 15%;
- no development of new coal-fired power plant (with some exceptions); and
- there will be a transition to NRE (subject to security of supply, affordability and reliability), including the inclusion of nuclear energy in the energy mix.
The 2025 RUPTL, however, does present certain challenges. As PLN’s generation strategy prioritizes projects with the lowest production cost, coal-fired power plants are likely to be favored over newer NRE technologies in terms of energy affordability, sustainability and security, due to their higher capacity factors and lower costs of production. Meanwhile, NRE plants (other than geothermal) face intermittency challenges and require additional capital investments, such as battery energy storage system (BESS) to stabilize output for interconnection with PLN’s grid network. These factors drive up production costs and may increase the burden on the state electricity subsidy. The 2025 RUPTL addresses this by now allowing the private sector to participate in the development of transmission projects, to ease PLN’s expenditure on transmission cost.
In conclusion, the 2025 RUPTL brings a breath of fresh air and new opportunities for the IPP market, with emerging prospects in nuclear energy and expanded roles for the private sector in the development of transmission and substation.
