Gotrade News - Indonesia is accelerating its green energy infrastructure with plans to deploy 10 gigawatts of solar power capacity to replace diesel generators across the archipelago. The push comes alongside state utility PLN's supergrid project connecting the islands of Sumatra and Java using advanced HVDC transmission technology.
President Prabowo Subianto has personally directed the acceleration of the solar program through the Ministry of Energy. The private sector is moving in parallel, with Barito Renewables targeting 1 GW of geothermal capacity.
Key Takeaways:
- The Indonesian government is preparing 10 GW of solar capacity to replace diesel power plants
- PLN is developing a 112 km HVDC supergrid connecting Sumatra and Java islands
- Barito Renewables posted US$165 million net profit in 2025 while pushing toward 1 GW geothermal
Energy Minister Brian Yuliarto confirmed that the president specifically requested faster diesel replacement timelines. PLN has been designated as the sole implementer, with location selection and project execution under its authority.
Joint capacity calculations were conducted by the energy ministry, PLN, state holding company Danantara, and university experts. The feasibility assessment identified up to 17 GW of installable solar capacity as part of a broader 100 GW program.
PLN's Sumatra-Java HVDC Supergrid
PLN is building a 112-kilometer supergrid interconnection between Sumatra and Java using High Voltage Direct Current technology. HVDC enables efficient long-distance power transmission, which is critical for an archipelago nation like Indonesia.
PLN CEO Darmawan Prasodjo stated that Indonesia needs approximately 48,000 kilometers of transmission networks. This infrastructure is essential to resolve electricity supply imbalances between remote regions and high-demand urban centers.
A joint feasibility study on HVDC implementation is underway with Indonesia's Electrical Society and Cigre Indonesia. The project is included in PLN's official business plan covering the 2025 to 2034 period.
Barito Renewables Targets 1 GW Geothermal
In the private sector, Barito Renewables is targeting 1 GW of total geothermal capacity. The company produced 6,885 GWh of geothermal electricity throughout 2025.
President Director Hendra Soetjipto Tan reported solid 2025 performance driven by the geothermal portfolio. Net profit reached US$165 million, representing 6.5% year-over-year growth.
Total revenue came in at US$605 million with EBITDA of US$518 million for the year. The 85.6% EBITDA margin reflects strong operational efficiency in the renewable energy segment.
These three initiatives collectively signal a meaningful acceleration in Indonesia's energy transition. The convergence of government solar mandates, grid modernization, and private geothermal investment positions the country for faster decarbonization this decade.
Sources:
- Bloomberg Technoz, PLN Update Supergrid Sumatra-Jawa Mau Pakai Transmisi HVDC, 2026.
- Liputan6, Pemerintah Tancap Gas Energi Surya, 10 Giga PLTS Disiapkan Gantikan Diesel, 2026.
- SindoNews, Targetkan Kapasitas 1 GW, BREN Pacu Ekspansi Panas Bumi, 2026.
