PLN opens transmission investment to private sector as $5 billion needed
Wednesday, October 22 2025 - 07:12 AM WIB
By Cepi Setiadi
State electricity firm PT Perusahaan Listrik Negara (PLN) is inviting greater private sector participation in electricity transmission projects as it faces significant financing challenges to expand the national power infrastructure.
PLN Chief Technology and Sustainability Officer Evy Haryadi said private involvement has become essential since PLN’s funding capacity is limited, while the expansion of transmission networks is crucial to support Indonesia’s energy transition and ensure equitable electricity access across the archipelago.
“The transmission network is key to connecting renewable energy potentials such as geothermal and hydro resources in remote areas with demand centers. It would be impossible for PLN alone to build 48,000 circuit kilometers, which require around US$5 billion in investment. That’s why we are very open to collaboration with the private sector,” Evy said during the HIPMI–Danantara Business Forum 2025 on Monday (Oct. 20).
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He said PLN is currently preparing to develop about 48,000 circuit kilometers of new transmission lines, with an estimated investment requirement of US$5 billion. However, he acknowledged that the internal rate of return (IRR) for transmission projects remains relatively low at 2–4 percent, making them less attractive to investors without adequate regulatory incentives.
“We need regulations that can make transmission projects more commercially viable, so that the private sector can participate not only in generation but also in transmission,” he said, adding that PLN is ready to facilitate cooperation through coordination with the relevant directorates.
“In essence, PLN is very open to collaboration. Interested parties may coordinate with the related directorates to explore potential partnerships,” Evy said.
Editing by Reiner Simanjuntak