Indonesia’s national energy transformation will be implemented in 2026, and clean power distribution will be accelerated.

In March 2026, Indonesian President Prabowo officially unveiled the establishment of a national energy transformation acceleration working group, led by Minister of Energy and Mineral Resources Bahriel, to coordinate the implementation of national energy transformation policies, project approvals and resource allocation, marking that Indonesia's power distribution industry has officially entered the clean and low-carbon high-speed iteration stage. The core goal of this top-level policy adjustment is to quickly reduce the dependence of the national power system on fossil energy and implement the 100GW large-scale solar development master plan previously announced by the government. The upgrading and transformation of the distribution network has become the core supporting project of this transformation.

Compared with previous years' focus on the construction of large-scale power generation, Indonesia's energy policy in 2026 will focus on the grassroots power distribution field, specifically solving pain points such as poor adaptability of traditional distribution networks, insufficient clean energy consumption capabilities, and unbalanced urban and rural power supply. Officials clearly require that all localities simultaneously promote the intelligent transformation of power grids, expand the capacity of rural power distribution networks, and build new energy grid-connected supporting facilities, and comprehensively expand clean power distribution scenarios from traditional industrial parks to urban communities, public schools, rural residential areas and other livelihood areas to achieve full coverage of clean energy power distribution.

The implementation of this policy has brought new development opportunities to the power distribution industry. On the one hand, it has greatly released the market demand for grassroots distribution network transformation, intelligent power distribution equipment, and new energy grid-connected equipment. On the other hand, it has standardized the construction standards of the Indonesian power distribution industry and promoted the iterative update of old and high-energy-consuming power distribution equipment. At the same time, the coordinating mechanism of the national working group has effectively solved the previous industry pain points of cumbersome cross-departmental approvals and delayed project implementation, greatly improved the efficiency of power distribution upgrade projects, and has become the core driving force for the transformation and upgrading of Indonesia's power distribution industry in 2026.