Danantara, PLN sign HoA to explore renewable energy investments
Tuesday, December 23 2025 - 06:49 AM WIB
By Romel S. Gurky
Danantara Indonesia, through Danantara Investment Management (DIM), has signed a Head of Agreement (HoA) with state electricity firm PT PLN (Persero) to explore investment opportunities in renewable energy projects in Indonesia.
The HoA, signed on December 22, 2025, marks an initial step toward accelerating the development of new and renewable energy generation. Under the agreement, DIM will assess potential investments in renewable power projects developed by PLN’s subsidiaries, PLN Nusantara Renewables (PLN NR) and PLN Indonesia Power Renewables (PLN IPR).
PLN stated that the collaboration aligns with its sustainability-driven strategy and Indonesia’s energy transition goals, as outlined in the 2025–2034 Electricity Supply Business Plan (RUPTL). The RUPTL targets the addition of 70 GW of new power generation capacity, with around 76% expected to come from renewable sources.
Pandu Sjahrir, Chief Investment Officer of Danantara Indonesia, said the partnership supports Indonesia’s long-term objective of energy self-sufficiency while addressing climate change challenges. He noted that Danantara’s role extends beyond financing to actively identifying and helping resolve project development challenges, facilitating competitive access to capital, and supporting the creation of green employment.
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PLN President Director Darmawan Prasodjo said energy transition requires strong collaboration and sustainable financing. He added that Danantara’s involvement would strengthen PLN’s ability to develop renewable projects in a more structured manner and ensure timely execution of green projects listed in the RUPTL.
PLN estimates that investment of around Rp600 trillion (approximately US$36 billion) will be required to support the development of about 20 GW of new power capacity. Through the HoA, Danantara Indonesia and PLN aim to combine investment capability with operational expertise to help accelerate the achievement of national renewable energy targets.
Both parties emphasized that the HoA is non-binding and represents an early stage of cooperation. Details on the investment structure and implementation will be disclosed at a later date, subject to due diligence and applicable regulations.
Editing by Alexander Ginting