Indonesian power distribution industry information

Indonesia PLN’s ten-year power plan will be fully implemented in 2026, and the scale of the distribution network will be significantly expanded.

2026-07-01 · Indonesian power distribution industry information

Indonesia PLN’s ten-year power plan will be fully implemented in 2026, and the scale of the distribution network will be significantly expanded.

2026 is the first year for the full implementation of the "2025-2034 Power Supply Business Plan" of Indonesian Power Company (PLN). The entire ten-year power development plan has entered the stage of large-scale implementation. The expansion and intelligent upgrading of the distribution network have become the annual core construction tasks, completely reconstructing the layout of Indonesia's national power distribution system. The plan is based on Indonesia's economic development and energy transformation needs in the next ten years, clarifies the quantitative development goals for power installation, power grid construction, and power distribution upgrades, and provides clear policy and construction guidance for industry development.

According to the plan, by 2034, Indonesia will have an additional 69.5GW of installed electricity capacity, of which 76% will come from renewable energy sources such as photovoltaics, wind power, and hydropower and supporting energy storage systems. The proportion of traditional fossil energy installed capacity will continue to shrink. In order to meet the demand for large-scale new energy grid connection, PLN will focus on promoting the construction of power distribution infrastructure in 2026, planning to build a new high- and low-voltage power distribution network with a total length of 198,000 kilometers, and simultaneously construct a large number of urban and rural substations, booster stations and grid-connected supporting equipment to make up for the shortcomings in power distribution in remote areas.

In addition, Indonesia has selected five core provinces as smart power distribution demonstration areas to fully deploy power distribution automation terminals, smart meters, and power grid dispatching and monitoring systems to create an intelligent and digital distribution network model. The centralized construction in 2026 has effectively solved the problems of Indonesia's original distribution network lines, insufficient capacity, and weak new energy consumption. It has greatly improved the stability and compatibility of the power grid. It has also brought massive project opportunities to domestic and foreign power distribution equipment companies and engineering service providers, and continued to activate Indonesia's 100 billion power distribution market.