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🇮🇩 Indonesia /Energy & Infrastructure

Indonesia to streamline state power firm PLN's subsidiaries by 2028

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • Indonesia's sovereign wealth fund, Danantara, plans to reduce state power firm PLN's subsidiaries from 44 to 23 by 2028.
  • This restructuring aims to boost operational efficiency, strengthen corporate governance, and create a more focused business structure.
  • The plan also includes accelerating the Electricity Supply Business Plan (RUPTL) and reinforcing the electricity system, especially after disruptions in Sumatra.

Indonesia's sovereign wealth fund, Danantara, is set to implement a significant restructuring of the state-owned electricity company PT PLN, aiming to reduce its subsidiaries from 44 to 23 by the year 2028. This strategic move is designed to enhance operational efficiency, bolster corporate governance, and establish a more cohesive and integrated business framework for the energy giant.

Accelerating the transformation and strengthening the reliability of the electricity system is key for PLN to effectively support national energy resilience.

— Dony OskariaExplaining the strategic importance of PLN's restructuring for national energy security.

The plan was detailed during a recent meeting between the Head of the State-Owned Enterprises (SOEs) Management Agency and the Chief Operating Officer (COO) of Danantara Indonesia, Dony Oskaria, with the PLN board of directors. Oskaria stated that the streamlining of subsidiary companies is crucial for accelerating transformation and strengthening the reliability of the electricity system, which is vital for national energy resilience.

PLN also reported the progress in the implementation of RUPTL 2025-2034, which shows positive progress.

— Dony OskariaHighlighting the positive progress in the implementation of the Electricity Supply Business Plan.

In addition to reducing the number of subsidiaries, the meeting also focused on the progress of the Electricity Supply Business Plan (RUPTL) for 2025-2034. PLN reported positive developments, with approximately 1,634 projects, nearly 40 percent of the total planned, having entered the execution phase. This indicates a strong commitment to expediting the development of national electricity infrastructure, including power plants and transmission networks, to meet escalating energy demands.

Out of the total planned electricity projects, around 1,634 projects, nearly 40 percent, have entered the execution phase.

— Dony OskariaProviding a specific metric on the execution of planned electricity projects.

Oskaria also addressed the need to strengthen the electricity system following recent disruptions in Sumatra. He urged PLN to continuously evaluate and enhance the system's reliability. Strategic projects are underway to bolster Sumatera's electricity backbone infrastructure, including the construction of 500 kV, 275 kV, and 150 kV transmission networks, and increasing power plant capacity in various regions to mitigate future risks and minimize disruption impacts.

He urged PLN to continue evaluating the system to enhance the reliability of electricity supply.

— Dony OskariaEmphasizing the need for continuous evaluation to improve electricity supply reliability.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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