Private Sector Will Get A Bigger Share To Build Power Plants

Private companies will have a larger share in building power plants, according to the 2025-2034 Electricity Supply Business Plan (RUPTL), which will increase by 71 gigawatts (GW). This was announced by the Minister of Energy and Mineral Resources, Bahlil Lahadalia, in Sumedang, West Java, on Monday (January 20, 2025). Bahlil stated that the plan to involve the private sector more significantly will be outlined in the Independent Power Producer (IPP) scheme through project auctions, with 60 percent of the total additional electricity capacity in the RUPTL allocated to private companies. "So, 71 gigawatts is the largest share, about 60 percent will be given to the private sector," Bahlil said, as reported by ANTARA on Monday (January 20, 2025).

He added that private companies can undertake power plant projects as long as they have credibility and align with government goals, rather than creating separate initiatives. By increasing private sector involvement, Bahlil aims for the government to target more extensive electricity transmission development over the next decade. This will help optimize the use of renewable energy in Indonesia and facilitate the energy transition.

Encouraging private sector roles, President Prabowo Subianto previously stated that he would allocate a larger share to private companies in infrastructure projects in Indonesia, such as toll roads, ports, and airports. This way, the government's role will focus more on core projects that protect the people. According to the President, private companies are more efficient, innovative, and experienced in building infrastructure, which is expected to positively impact economic growth in the regions.

Tag: Bahlil Lahadalia Electricity Supply Business Plan Prabowo Subianto