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.