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Indonesia to Add 69.5 GW of New Green Energy by 2034

Indonesia to Add 69.5 GW of New Green Energy by 2034

On 13th June 2025, Indonesia has unveiled an ambitious plan to add 69.5 gigawatts (GW) of new green energy capacity by 2034, marking a significant step toward a cleaner and more sustainable energy future. The initiative is part of the country's updated electricity development plan (RUPTL), which aims to significantly reduce dependency on fossil fuels and transition toward a more environmentally friendly and diversified energy mix.

The planned capacity will be sourced from various renewable energy sectors, including solar, hydro, geothermal, wind, and biomass. Solar energy is expected to contribute the largest share, supported by Indonesia’s favorable tropical climate and vast geographical potential. Hydropower and geothermal—where Indonesia holds one of the world's largest reserves—will also play critical roles in achieving the targeted capacity. Wind and biomass are projected to contribute on a smaller but growing scale as technology and infrastructure improve.

This initiative reflects Indonesia's commitment to meeting its climate goals under the Paris Agreement and its nationally determined contributions (NDCs). The government aims to increase the share of renewables in the national energy mix to at least 23% by 2025 and beyond that in the years leading up to 2034. The transition is also seen as vital to reducing greenhouse gas emissions and ensuring long-term energy security in the archipelagic nation of over 270 million people.

The plan includes massive infrastructure development, regulatory reforms, and investment incentives to attract private sector participation. State-owned utility company PLN (Perusahaan Listrik Negara) will play a central role in facilitating and managing the transition. Partnerships with domestic and international investors, technology providers, and financial institutions are expected to support implementation. However, achieving the 69.5 GW target poses challenges, including financing, land acquisition, transmission network development, and the integration of intermittent energy sources like solar and wind. To address these issues, the government is streamlining permitting processes, introducing feed-in tariffs, and promoting public-private partnerships to de-risk investment.

With this strategic shift, Indonesia is positioning itself as a leader in Southeast Asia’s clean energy transition. If successfully implemented, the plan will not only help meet domestic energy needs but also support job creation, economic diversification, and environmental sustainability. The next decade will be critical as the nation works to turn this bold vision into reality, setting a precedent for other developing countries aiming to balance growth and climate responsibility.

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